solution
solution.
A. Order condition estimates the equation with the fewest variables first. Rank condition estimates the equation with the most variables last. | |
B. Order condition is satisfied if each equation includes at least “n” variables. Rank condition is satisfied if the total number of variables in the system is n-squared. | |
C. Order condition is satisfied if each equation in the model has the same number of variables. Rank condition is satisfied if at least n/2 equations are a linear combination of other equations in the system. | |
D. Order condition is satisfied if each equation excludes at least “n-1” variables appearing in the model. Rank condition is satisfied if there exists at least one non-zero determinant of order n-1 in the array of coefficients. |
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