If There Are Two Unbiased Estimators of a Population Parameter

question 11

Multiple Choice

If there are two unbiased estimators of a population parameter available,the one that has the smallest variance is said to be:

• A)a biased estimator.
• B)relatively efficient.
• C)consistent.
• D)relatively unbiased.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.

Premium Capital

Capital that is obtained or raised at a value above its nominal or face value, often reflecting the additional amount paid by investors over the par value of securities or shares.

Stated Value

The nominal value assigned to no-par stock by the issuing company's board of directors.

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and operational efficiency.