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2) We saw in class that under certain conditions it can be shown that 7 is BLUE for My. State what the letters B and U in BLU

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Answer #1

a) B in "BLUE" stands for best. Here best means least variance. That is the estimator ,which is the BLUE, has the least variance among all other linear estimators belonging to the class of linear unbiased estimator for the parameter of interest, population mean here.

b) U in BLUE means in unbiased. The BLUE is the unbiased estimator of the parameter, that is the expected value of the BLUE (sample mean, here) is the population parameter (population mean, here).

N.B. BLUE stands for best linear unbiased estimator.

Hope the solution helps. Thank you.

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