An Unbiased Estimator Is Said to Be Consistent If the Difference

question 107

True/False

An unbiased estimator is said to be consistent if the difference between the estimator and the parameter grows smaller as the sample size grows larger.

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating efficiency in managing stock.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Acid-test Ratio

A financial metric that assesses a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

This ratio evaluates the ability of a business to cover its obligations due in the next year, by calculating the proportion of its current assets to its current liabilities.