If There Are Two Unbiased Estimators of a Population Parameter

question 11

Multiple Choice

If there are two unbiased estimators of a population parameter available,the one that has the smallest variance is said to be:

• A)a biased estimator.
• B)relatively efficient.
• C)consistent.
• D)relatively unbiased.

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Definitions:

Conversion Ratio

The specific quantity of shares an investor can receive for each convertible security if they choose to convert it into equity.

Pay-in-Kind Bond

A bond that pays interest in the form of additional bonds or securities instead of cash, often used by companies seeking to preserve cash flow.

Interest

The charge for borrowing money, typically expressed as an annual percentage rate, or the income earned from lending money.

Asset-Backed

A type of investment that is secured by a tangible asset, which can be sold to repay investors if the borrower defaults.