Suppose that the regression model is y i = + i , where a. Given
Question:
Suppose that the regression model is yi= μ + εi, where
a. Given a sample of observations on yi and xi, what is the most efficient estimator of μ? What is its variance?
b. What is the OLS estimator of μ, and what is the variance of the ordinary least squares estimator?
c. Prove that the estimator in part a is at least as efficient as the estimator in part b.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: