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(Requires Appendix material)Your textbook shows that OLS is a linear estimator 1 =
,where
.For OLS to be conditionally unbiased,the following two conditions must hold:
and
= 1.Show that this is the case.
Revenue Accounts
Accounts in the general ledger that record the income generated from the sale of goods or services.
Dividends
Distribution of profits by a corporation to its shareholders, typically in the form of payments.
Retained Earnings
The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested in the company.
Trial Balance
A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.
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