Classical Linear Model Assumptions Under CLM,OLS is not only BLUE,but also the minimum variance unbiased estimator ◆ We can summarize the population assumptions of CLM(A6)as follows yx Normal(Bo+Bx+...+Bo) While for now we just assume normality,clear that sometimes not the case Large samples will let us drop normality Econometrics 15-Zhuxi@SJTU 5Econometrics 15 - Zhuxi@SJTU 5 Classical Linear Model Assumptions Under CLM, OLS is not only BLUE, but also the minimum variance unbiased estimator We can summarize the population assumptions of CLM (A6) as follows y|x ~ Normal(b0 + b1 x1 +…+ bk xk , s2 ) While for now we just assume normality, clear that sometimes not the case Large samples will let us drop normality