1. What the properties necessary for OLStobethe Best Linear Unbiase...

1. What are the properties necessary for OLS to be the Best Linear Unbiased Estimator? (List and describe)

If all Gauss-Markov assumptions are met than the OLS estimators alpha and beta are BLUE – best linear unbiased estimators:

best: variance of the OLS estimator is minimal, smaller than the variance of any other estimator
linear: if the relationship is not linear – OLS is not applicable.
unbiased: the expected values of the estimated beta and alpha equal the true values describing the relationship between x and y.

2. Table 1 shows summary statistics for a subsample of the 2014 CPS. Use to answer the following questions:
(a) What percent of the sample is Female? 50.3%
(b) What percent of the sample lists race as American Indian? %1
(c) How many people in the sample list race as other? (You may need to round it off. ) 0.0142*1199=17.03

It shows 17 people list race as other.