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Suppose that your population model is yi=0+1*xi+i for each i. Obtain the Ordinary Least Squares (OLS) estimators for 0 and 1. Point out properties of OLS and interpret them.

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User Bardt
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1 Answer

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The Ordinary Least Squares (OLS) estimators for the intercept (β0) and slope (β1) in the population model yi = β0 + β1 * xi + ε are obtained by minimizing the sum of squared residuals. OLS has several properties, including unbiasedness, consistency, efficiency, and asymptotic normality, which make it a desirable method for estimating parameters.

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User Daniel Treiber
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