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(Solved): a) Explain the BLUE properties of the OLS estimates when the CLRM assumptions hold.   b) Using ...



a) Explain the BLUE properties of the OLS estimates when the CLRM assumptions hold.

 

b) Using an example, outline the steps involved in performing a Wald test to test significance of a sub-group of coefficients in a multiple regression model.



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Property 1: Linear This property is more concerned with the estimator rather than the original equation that is being estimated. In assumption A1, the focus was that the linear regression should be “linear in parameters.” However, the linear property
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