Question

Given the assumptions of the classical linear regression model, the ordinary least square estimators possess some optimum properties-given in the Gauss-Markov theorem. Which of the following is not a part of this theorem?

• A. The slope estimator \(\hat{\beta}_2\) is a linear function of random variables
• B. The expected value of \(\hat{\beta}_2\) is equal to zero
• C. No linear unbiased estimator has lower variance than that of \(\hat{\beta}_2\)
• D. The estimator \(\hat{\beta}_2\) is an unbiased estimator of \(\hat{\beta}_2\)

Answer 1

The Correct Option is B

The correct answer is (B) : The expected value of \(\hat{\beta}_2\) is equal to zero.