Suppose we estimate the following model with OLS:  Which of the following statements is always true:

A First Course in Probability (10th Edition)
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  1. Suppose we estimate the following model with OLS: 

    Which of the following statements is always true:

       

    OLS chooses and which minimize the sum of squared residuals.

       

    OLS chooses and which minimize the sum of residuals.

       

    OLS chooses and so that is an unbiased estimator of .

       

    OLS chooses and so that it captures the functional form of the relationship between x and y.

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