A Treatise on Ordinary Least Squares Estimation of Parameters of Linear Model

Abstract

This research article primarily focuses on the estimation of parameters of a linear regression model by the method of ordinary least squares and depicts Gauss-Mark off theorem for linear estimation which is useful to find the BLUE of a linear parametric function of the classical linear regression model. A proof of generalized Gauss-Mark off theorem for linear estimation has been presented in this memoir. Ordinary Least Squares (OLS) regression is one of the major techniques applied to analyse data and forms the basics of many other techniques, e.g. ANOVA and generalized linear models [1]. The use of this method can be extended with the use of dummy variable coding to include grouped explanatory variables [2] and data transformation models [3]. OLS regression is particularly powerful as it relatively easy to check the model assumption such as linearity, constant, variance and the effect of outliers using simple graphical methods [4]. J.T. Kilmer et.al [5] applied OLS method to evolutionary and studies of algometry.