# Gauss Markov ## Econometrics: What is time-series data?

Time series data is points of information achieved successively at equally spaced periods of time. An example of time series data used in econometrics would be that of share price movements. These data points increase, decrease or remain the same and can be plotted accordingly. These respective data points are often plotted in a line … ## Econometrics: What is the dummy variable trap?

The common intercept value in a linear regression equation is always taken as one. The basis for this is that including a constant in a given model is the same as including an explanatory variable whose value is always equal to one. When using dummy variables in econometrics, dummy variable will always takes the value … ## What is a correlation coefficient?

The correlation coefficient is used in economics and throughout econometrics to measure the strength of a relationship between two given variables. This econometric measure also gives an indication of whether the two variables are positively related or negatively related to each other. The correlation coefficient is measured between -1 to +1. For example if we … ## Econometrics: What is the Gauss Markov Theorem?

According to the Gauss Markov Theorem, if the first six classical assumptions are met within your model, then the estimates produced by Ordinary Least Squares will be BLUE. This means that Ordinary Least Squares will produce the Best Linear Unbiased Estimates available. Hence, BLUE. Check out our blogs on the classical assumptions here. So what exactly …

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