The OLS estimators are also efficient. Here, efficiency means that among all estimators whose formulas are linear
Question:
The OLS estimators are also efficient. Here, efficiency means that among all estimators whose formulas are linear in the dependent variable, the OLS estimator has the smallest variance. It therefore has the greatest “power” for rejecting the null hypothesis that a coefficient is zero.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
This is important because it means that the OLS estimator is able to provide the most precise and accurate estimates of the coefficients in the model ...View the full answer
Answered By
Kenneth Mutia
I have a B.S. in Statistics from the Jomo Kenyatta University of Agriculture and technology. I have been an academic tutor for over 3 years. I have a passion for helping students reach their full potential and am dedicated to helping them succeed. I am patient and adaptable, and I have experience working with students of all ages and abilities, from elementary school to college in their various fields. I have a wide scope of diverse tutoring experience in several courses of study with significant success as a tutor.
0 Reviews
10+ Question Solved
Related Book For 
Cost Benefit Analysis Concepts And Practice
ISBN: 9781108401296
5th Edition
Authors: Anthony E. Boardman, David H. Greenberg, Aidan R. Vining, David L. Weimer
Question Posted:
