A Biased Estimator May Be Preferable to an Unbiased Estimator

question 37

Multiple Choice

A biased estimator may be preferable to an unbiased estimator if:

• A) the unbiased estimator has substantially less variability than the biased one.
• B) the biased estimator has more variability than the unbiased one.
• C) the biased estimator has substantially less variability than the unbiased one.
• D) The only occasion where one would use a biased estimator is if an unbiased estimator did not exist.

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