An assumption necessary to prove that the ORDINARY LEAST SQUARES (OLS) estimator is the BEST LINEAR UNBIASED ESTIMATOR (BLUE) is that the variance of the error is constant for all observations, or HOMOSKEDASTIC. ...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles