When are the least-squares estimators 'best' (lowest variance) of any unbiased estimators?
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2 marksEconometricsLinear regression and OLSThe Gauss-Markov theorem and OLS propertiesModerateabout 3 min
DSE 2009 Question 40: Linear regression and OLS
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Linear regression and OLS has come up 74 times in 7 exams since 2008.
What this question tests
This question is on The Gauss-Markov theorem and OLS properties, part of Linear regression and OLS in Econometrics.
Why OLS is the best linear unbiased estimator, and what it needs.
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Question from the DSE 2009 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.