Which of the following conditions is not necessary for ordinary least squares to be the best unbiased linear estimator (BLUE)?
The Ordinary Least Squares (OLS) method is used to estimate the parameters in a linear regression model. For the OLS estimator to be the Best Linear Unbiased Estimator (BLUE), it must satisfy the Gauss-Markov assumptions. These assumptions are: 1. Linearity : The relationship between the independent variables and the dependent variable is linear. 2. Random Sampling : The data is obtained through a random sample of the population. 3. No Perfect Multicollinearity : There is no perfect multicollinearity between the independent variables. 4. Zero Conditional Mean : The errors have an expectation of zero given any value of the independent variables. 5. Homoscedasticity : The errors have constant variance (σ2). 6. No Autocorrelation : The errors are uncorrelated with each other. Given these assumptions, the condition that is not necessary for OLS to be BLUE is: (a) All errors are normally distributed Normality of the errors is not required for the OLS estimator to be BLUE according to the Gauss-Markov theorem. Normality is only necessary if we want to make specific inference statements (like t-tests and F-tests) or for the errors to follow a normal distribution.
What common theme underpins the work of the 2024 GiRA Prize laureates Bina Agarwal and James K. Boyce?
Consider the following statements regarding the directions provided by the Reserve Bank of India with respect to regulating entities facilitating cross ...
The Rashtriya Gokul Mission, which has played a vital role in increasing India's milk production, contributed to an increase in milk production by what ...
Which bank has launched its GST Sahay App for MSME borrowers to access loans digitally using GST invoices & becomes the first public sector bank to inte...
Which cricketer has become the first Indian female cricketer to win the Wisden Cricketer of the Year Award?
What does the word 'Udbhav' mean in the context of 'Project UDBHAV' launched by Defence Minister Rajnath Singh?
The Losar festival is celebrated in which Indian state?
Which of the following statements accurately describe the launch of UPI at Galeries Lafayette in Paris?
1. UPI was launched as part of an effort ...
Equitas Small Finance Bank announced its partnership with _______ for the launch of its new co-branded credit cards, to provide the company with the fac...
The RBI notified that District Central Co-operative Banks are allowed to close their unremunerative branches without prior permission of the central ban...