Question
Consider linear regression Yi = Bo + B1x1 + ...+ Bpxip + Ui; i = 1,..., n where the error terms ui ~ N(0, o2)
- Consider linear regression
Yi = Bo + B1x1 + ...+ Bpxip + Ui; i = 1,..., n
where the error terms ui ~ N(0, o2) are independent and are indepen- dent of x-variables, the x-variables are not collinear, and E i=1(Xij - xj;)2 > 0 for all j = 1, ... , p, where xj is the sample mean of variable xj.
Select TRUE or FALSE for the following statements:
(a) The OLS estimators B, of the parameters 3,, j= 0, 1,....p, are BLUE.
(b) The OLS estimators 3, of the parameters 3,, j= 0, 1, .. . .p, are unbiased but they are not BLUE.
(c) The OLS estimators 3, of the parameters 3,. j= 0, 1,.. .p. are minimum variance unbiased estimators.
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