Explain the meaning of the statement If regression model assumptions SR1-SR5 hold, then the least squares estimator
Question:
Explain the meaning of the statement "If regression model assumptions SR1-SR5 hold, then the least squares estimator \(b_{2}\) is unbiased." In particular, what exactly does "unbiased" mean? Why is \(b_{2}\) biased if an important variable has been omitted from the model?
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Unbiased Estimator An estimator is a statistical tool used to estimate a population parameter based on sample data In linear regression the least squa...View the full answer
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Related Book For 
Principles Of Econometrics
ISBN: 9781118452271
5th Edition
Authors: R Carter Hill, William E Griffiths, Guay C Lim
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