Consider the model y=1+e where for X = {r1, ... , IN}, and for all i, E (e,|X) = c # Which of the following is correct? O The OLS estimator for 7 is unbiased. The OLS estimator for 7 is =

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
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ISBN:9780079039897
Author:Carter
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Chapter10: Statistics
Section10.1: Measures Of Center
Problem 9PPS
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Question
Consider the model y =7+e where for X = {r1,...,IN}, and for all i, E (eX) = c# 0.
Which of the following is correct?
O The OLS estimator for 7 is unbiased.
The OLS estimator for 7 is =
111
The OLS estimator for y is ĝ =
O None of the above
O The OLS estimator for Y is biased
Transcribed Image Text:Consider the model y =7+e where for X = {r1,...,IN}, and for all i, E (eX) = c# 0. Which of the following is correct? O The OLS estimator for 7 is unbiased. The OLS estimator for 7 is = 111 The OLS estimator for y is ĝ = O None of the above O The OLS estimator for Y is biased
Expert Solution
Step 1

From the given information,

Statistics homework question answer, step 1, image 1

Here, the ols estimator is unbiased estimator.

Statistics homework question answer, step 1, image 2

Hence, the option "the OLS estimator for γ is unbiased" is correct.

 

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