Blue

Encyclopedia : B : BL : BLU : Blue

In statistics, and in particular in estimation theory, "BLUE" is an acronym for Best Linear Unbiased Estimator. This means that given a sample of data, the estimator is a linear combination of this data which measures the right quantity with no systematic errors (unbiased) and is the most efficient (best) because its variance is minimal.

The Gauss–Markov theorem states that for a linear model in which errors obey certain assumptions (they have expectation zero, are uncorrelated and have equal variances), the ordinary least squares estimator is BLUE.

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