ECON 325 Lecture Notes - Lecture 5: Bias Of An Estimator
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The due date is monday, november 16 before the class starts: do exercise 7. 3(a)(b)(c), 7. 12, 7. 15, 7. 20, 7. 33, suppose that x1 and x2 are random samples of observations from a population with mean and variance 2. Consider the following three point estimators of : X2 (a) show that all three estimators are unbiased. (b) which of the estimators is the most e cient, i. e. , has the smallest variance? (c) in general, we may consider an estimator of given by. Prove your claim: let {x1, x2, , xn} be n observations, each of which is randomly drawn from normal distribution with mean and variance 2. Suppose that we know the value of is equal to 10 but we do not know the value of 2. We consider an estimator 2 = (1/n) pn i=1(xi 10)2.
