An Estimator That Tends to Produce More Accurate Estimates of the Population

question 99

Multiple Choice

An estimator that tends to produce more accurate estimates of the population parameter as the sample size increases is best characterized as a(n) ____________.

• A)Biased estimator
• B)Efficient estimator
• C)Unbiased estimator
• D)Consistent estimator

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Definitions:

Weighted Sum

A calculation that takes various quantities into account, multiplying each by a factor that reflects its importance and then adding these products together.

Variances

Statistical measures of the dispersion or spread in a set of data points, often used to assess the volatility of investment returns.

Perfectly Negatively Correlated

Refers to a relationship where one variable increases exactly as the other decreases, indicating a complete opposite movement between the two.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, often used to quantify the risk of an investment.