The Gauss-Markov Theorem Proves That A $t$ Distributed $X _ { 1 } , \ldots , X _ { n }$

question 28

Short Answer

The Gauss-Markov Theorem proves that a. the OLS estimator is $t$ distributed.
b. the OLS estimator has the smallest mean square error.
c. the OLS estimator is unbiased.
d. with homoskedastic errors, the OLS estimator has the smallest variance in the class of linear and unbiased estimators, conditional on $X _ { 1 } , \ldots , X _ { n }$ .

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling similar but not identical products, with each having some control over its own prices.

Price Makers

Entities in a market that have the power to set prices for goods or services because they hold significant control over the market or the product.

Oligopoly

A market structure in which a small number of firms dominate the market, leading to limited competition and possibly higher prices for consumers.

Market Power

The ability of a firm or group of firms to influence or control prices and total market output.