## Gauss Markov Theorem: OLS is BLUE!

The Gauss-Markov theorem states that if your linear regression model satisfies the classical assumptions, then ordinary least squares (OLS) regression produces best linear unbiased estimates (BLUE) that have the smallest variance of all possible linear estimators. There are five Gauss Markov assumptions: Linearity: the parameters we are estimating using the OLS method must be themselves linear. Random:…