An Estimator Is Consistent If It Approaches the Estimated Population

question 26

True/False

An estimator is consistent if it approaches the estimated population parameter as the sample size grows larger.

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Definitions:

Exchange Rate

An exchange rate is the value of one currency expressed in terms of another currency, used to convert different currencies for trade and financial transactions.

Financial Position Date

A specific date on which the financial state of an entity is assessed, encompassing its assets, liabilities, and equity positions.

Cash-flow Hedge

A form of hedge that protects against the variability in cash flows resulting from changes in currency rates, interest rates, or commodities prices.

Fair-value Hedge

A hedging strategy aimed at offsetting changes in the fair value of an asset or liability or an identified portion of such an asset or liability.