CLM ASsumptions(cont) o Under CLM, OLS is not only blue, but is the minimum variance unbiased estimator o We can summarize the population assumptions of ClM as follows ◆yx~ Normal(B0+Bx1+…+Bxha) e While for now we just assume normality clear that sometimes not the case e Large samples will let us drop normality Economics 20- Prof andersonEconomics 20 - Prof. Anderson 3 CLM Assumptions (cont) Under CLM, OLS is not only BLUE, but is the minimum variance unbiased estimator We can summarize the population assumptions of CLM as follows y|x ~ Normal(b0 + b1 x1 +…+ bk xk , s 2 ) While for now we just assume normality, clear that sometimes not the case Large samples will let us drop normality