The OLS estimator for the multiple regression model in matrix form is
A)(X'X)-1X'Y
B)X(X'X)-1X' - PX
C)(X'X)-1X'U
D)(XΩ-1X)-1XΩ-1Y

Question

Quizplus · Accepted Answer

The OLS estimator for the multiple regression model in matrix form is represented by the formula β = (X'X)-1X'Y. This can be derived by minimizing the sum of squared residuals (SSR) which gives the minimum values of the sum of the square difference between the observed and predicted values. Therefore, the correct choice is (A), which represents the formula for the OLS estimator in matrix form.

The OLS Estimator for the Multiple Regression Model in Matrix