The Gauss Markov Theorem says a) Under the LS assumptions, the OLS estimator has the smallest...

The Gauss Markov Theorem says

a) Under the LS assumptions, the OLS estimator has the smallest variance among all linear unbiased estimators

b) Under the LS assumptions, the OLS estimator has the smallest variance among all linear estimators

c) The OLS estimator has the smallest variance among all linear unbiased estimators

d) Under the LS assumptions, the OLS estimator is the most consistent estimator of all linear unbiased estimators

Expert Solution

Solution-

The Gauss Markov Theorem says Under the LS assumptions, the OLS estimator has the smallest variance among all linear unbiased estimators.

The correct option is A. Under the LS assumptions, the OLS estimator has the smallest variance among all linear unbiased estimators.

Reason-

The Gauss-Markov Theorem states that, provided the Classical assumptions hold, the ordinary least squares (OLS) estimator b is the minimum variance estimator among all linear unbiased estimators.

Rahul Sunny answered 1 year ago

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Question

The Gauss Markov Theorem says a) Under the LS assumptions, the OLS estimator has the smallest...

Solutions

Expert Solution

Related Solutions

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