An Estimator Is Said to Be Consistent If

question 9

Multiple Choice

An estimator is said to be consistent if:

• A)the difference between the estimator and the population parameter grows smaller as the sample size grows larger.
• B)it is an unbiased estimator.
• C)the variance of the estimator is zero.
• D)the difference between the estimator and the population parameter stays the same as the sample size grows larger.

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Definitions:

Value-Added Tax (VAT)

A tax on the amount by which the value of an article has been increased at each stage of its production or distribution.

Income Tax

A government levy on individuals' or corporations' earnings.

Marginal Tax Rate

The rate of tax applied to the last dollar of income, indicating how much of any additional income will be taken as tax.

Lump-Sum Tax

A tax that is a set amount, no matter the taxpayer's income level or economic activity.