s2 when sigma2 is zero

Problem

In a LRM where \(σ^2=0\) , show that \(s^2=0\) .

Solution

If \(σ^2=0\) then all error terms \(ε_i\) are zero and we get a perfect fit with \(e_i=0\) for all \(i\) . Therefore, \(s^2=0\) .