An Estimator Is Unbiased If It Produces

question 4

Multiple Choice

An estimator is unbiased if it produces

• A)a parameter from the sample that equals the true parameter.
• B)estimates of a parameter that are close to the true parameter.
• C)estimates of a parameter that are statistically significant.
• D)estimates of a parameter that are on average equal to the true parameter.
• E)both b and c

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Definitions:

Average Product

The output per unit of input, such as the quantity of goods produced per unit of labor.

Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase and may decrease.

Labor Input

The amount of work contributed by employees, measured in hours or effort, used in the production of goods and services.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to isolate the relationship between two variables by holding other relevant factors constant.