A Decision Criterion in Which the Decision Payoffs Are Weighted

question 21

True/False

A decision criterion in which the decision payoffs are weighted by a coefficient of optimism is known as the Hurwicz criterion.

---

Definitions:

Biased Estimator

An estimator that, on average, does not equal the true parameter of the population, indicating a systematic error in estimation.

Population Parameter

A numerical value summarizing a characteristic of an entire population, such as mean or variance.

Efficient Estimator

An estimator that achieves the lowest possible variance among all unbiased estimators for a parameter of interest.

Random Sample

A sample drawn from a population in such a way that every individual has an equal chance of being selected, ensuring the sample's representativeness.