What is the proof of the Gauss-Markov theorem for OLS?Select one:a) The proof is based on showing that the OLS estimator is unbiased and has the minimumvariance among all linear unbiased estimatorsb) The proof is based on showing that the OLS estimator is consistent and has theminimum mean squared error among all linear consistent estimatorsc) The proof is based on showing that the OLS estimator is efficient and has the maximumlikelihood among all linear efficient estimatorsd) All of the answers are correctO a. aO b. bО с.CO d. d

Gauss-Markov Theorem states that the OLS estimator β^ is the best linear unbiased estimator (BLUE)…

Answered: What is the proof of the Gauss-Markov…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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5 True/False/uncertain 7) With all observations in the same cluster, RSQ = 1. 8) With 500 multiple imputation samples generating 500 predictions of 0 or 1 for the binary dependent variable for each observation, to combine the 500 predictions into one for each observation, one has to take the mean of all 500 predictions and use a cutoff of 50%.
Which distribution is a probability distribution with a low mean and highly skewed to the right? Which distribution is a probability distribution with a low mean and highly skewed to the right? Level distribution Normal distribution Poisson distribution Uniform distribution
Which of the following is true of heteroskedasticity? a) The R-squared statistic is affected by the presence of heteroskedasticity b) Heteroskedasticty causes inconsistency in the Ordinary Least Squares estimators c) The OLS estimators are not the best linear unbiased estimators if heteroskedasticity is present d) It is not possible to obtain F statistics that are robust to heteroskedasticity of an unknown form
The expected value and variance of the random variable X are as follows: E(x) = 716.04 var(x) = 48656.08 The random variable x is now transformed to y according to the following linear equation. y = a + bx a = 523.215 b = 11.275 16 In the previous question, the variance of the transformed random variable is: a 6185434.58b 6311667.94c 6440477.49d 6571915.81
In a hypothetical country called Tritonland, demand and supply of fish are determined by the following system of equations: Q Q = 3+P+v, where Q and P stand for quantity and price respectively, and that u and v are independent Uniform [0, 2]. Suppose we have i.i.d. observations (Qi, Pi)_1 from n markets in equilibrium. Answer the next few questions. = 15 P+u,
When Y is regressed on X, B, > 0, sx+ 0, sy # 0, and the fraction of the variation in Y explained by the least-squares regression of Y on X does not equal 1. In this example, the sum of the squares of the deviations of the actual Y-values from their mean would definitely be greater than the sum of the squares of the deviations of the predicted Y-values from their mean. 1 A) B) true false 4. When Y is regressed on X, the sample slope is negative, sx + 0, sy + 0, and Y; = Y; for every observation. In this example, the sum of the squares of the deviations of the predicted Y-values from their mean would definitely be less than the sum of the squares of the deviations of the actual Y-values from their mean. A) В) true false 3.
Suppose a researcher is interested in a new treatment plan for increasing CD4 cell count in immune-compromised patients with HIV. In order to investigate the new drug, the researcher gathers a group of 48 individuals with a mean CD4 count of 317 cells/mm3 after treatment with a standard deviation of 24.6. Test the hypothesis that the mean CD4 count has increased above the goal of 275 cells/mm3. Write out your hypotheses and correctly interpret your pvalue. (Use an alpha level of 0.01)
Econometrics Thomas Eisensee and David Stromberg wanted to measure how much news coverage of a foreign disaster impacted the amount of disaster relief provided by the U.S. government. They argue that the simple relationship would be biased. Let X = Minutes of News Coverage and Y= Disaster Aid. Choose a variable X2 that could bias the simple relationship. This variable should impact the amount of coverage and impact the amount of aid for reasons other than purely news coverage. Eisensee and Stromberg introduce an instrument Z = During the Olympics. Explain how Z could satisfy the relevant and exogenous criteria. Explain how you could use Z to estimate the impact of X on Y free from X2 bias. Hint: you should mention two stages.
What is the variance of u conditional on income, var(ulinc)? Consider the following savings model: Where inc = income and sav = savings A. var(inche) B. incvar(e) C. var(sqrt(inc)) D. var(e) sav= Bo + B₁inc + u, u = √inc * e
The lowest boundary of the model class with size 15 is 40.the frequency of this class is 7 .find the mode if frequencies of the classes preceding and succeeding the model class is 3 and 6 respectively
The following table was generated from the sample data of 10 newborn babies regarding the weight of the mother at birth, the weight of the father at birth, and the weight of the baby at birth. The dependent variable is the weight of the baby, the first independent variable (x) is the mother's weight, and the second independent variable (x2) is the father's weight. Intercept Coefficients Standard Error 20.430131 Mother's Weight - 1.048035 Father's Weight t-Stat p-value 2.323627 0.200737 8.792346 0.000316 -5.220929 0.003407 -0.934498 0.220528 -4.237555 0.008189 Step 1 of 2: Write the multiple regression equation for the computer output given. Round your answers to three decimal places. Answer How to enter your answer (opens in new window) ŷ = + x1 + x2 Copy Data Tables Keypad Keyboard Shortcuts
A5

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