To prove that the OLS estimator is BLUE requires the following assumption A)(X_i,Y_i)i = 1, …, n are i.i.d. draws from their joint distribution B)X_i and u_i have nonzero finite fourth moments C)the conditional distribution of u_i given X_iis normal D)none of the above

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Quizplus · Accepted Answer

The given options A, B, and C are not standard assumptions required to prove that the Ordinary Least Squares (OLS) estimator is the Best Linear Unbiased Estimator (BLUE). The Gauss-Markov theorem, which establishes that OLS is BLUE, requires assumptions such as linearity in parameters, random sampling, no perfect multicollinearity, zero conditional mean of errors, and homoscedasticity. None of the provided options directly correspond to these assumptions.

To Prove That the OLS Estimator Is BLUE Requires the Following