Which of the Following Is True of an Unbiased Estimator

question 18

Multiple Choice

Which of the following is true of an unbiased estimator value?

• A) The expected value will align perfectly with the population mean.
• B) The expected value will not equal the population's parameters.
• C) The expected value will not be greater than zero.
• D) The expected value will equal the population's parameter.

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Definitions:

Simple Rate of Return

A method of evaluating the financial performance of an investment by dividing annual incremental operating income by initial investment.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Accounting Net Income

The profit of a company after all expenses and taxes have been deducted from revenues.

Net Present Value Method

A financial analysis tool used to evaluate the profitability of an investment, taking into account the time value of money.