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.