Which of the Following Best Describes an Unbiased Estimator

question 101

Multiple Choice

Which of the following best describes an unbiased estimator?

• A) any sample statistic used to approximate a population parameter
• B) a sample statistic which has an expected value equal to the value of the population parameter
• C) a sample statistic whose value is usually less than the value of the population parameter
• D) any estimator whose standard error is relatively small

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Definitions:

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for financing payroll, accounts payable, and inventories.

Simple Interest

Interest that is computed solely on the initial sum invested or loaned, not taking into account any accumulated interest from previous periods.

Face Value

The nominal or dollar value printed on a security or financial instrument, representing its value upon maturity or redemption.

Treasury Bill

A short-term government security issued at a discount from the face value and yielding the face value upon maturity.