econometrics (Page 309)

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
3 This knowledge will help us to draw inferences about the true σ 2 from the estimated σ 2 , as we will show in Chapter 5. (The chi-square distribution and its properties are discussed in Appendix A.) 7.( ˆ β1, ˆ β2) are distributed independently of ˆ σ 2 . The importance of this will be explained in the next chapter. 8. ˆ β1and ˆ β2have minimum variance in the entire class of unbiased estimators, whether linear or not.This result, due to Rao, is very powerful because, unlike the Gauss–Markov theorem, it is not restricted to the class of linear estimators only. 4 Therefore, we can say that the least-squares estimators are best unbiased estimators (BUE);that is, they
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern