In General, Unbiased Estimators Are Preferred for Inference Because

question 10

Multiple Choice

In general, unbiased estimators are preferred for inference because:

• A) bias in inference is always bad and should be avoided at all costs, so using unbiased estimators is the only way to conduct objective inference.
• B) unbiased estimators always have the least amount of variance of all possible estimators.
• C) a biased estimator will almost always give very little insight into the parameter being estimated and, therefore, serves as a poor guess of the parameter's true value.
• D) in many cases the most probable value of an unbiased estimator is the value of the parameter being estimated; thus, unbiased estimators typically converge on values near the parameter.

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