2-11-09 - Economic Statistics Class Notes 2/11/09...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Economic Statistics – Class Notes – 2/11/09 Properties of Xbar o Estimator Take a random (representative) sample Get an estimate of the population The expected value of Xbar is equal to the population mean. Recall: 1. The distribution of Xbar is normal if: a. The parent population is normal b. If the sample size is large enough i. Central Limit Theorem- As the sample size increases, the sampling distribution of the sample means (Xbar) becomes more normal 2. a. Xbar’s mean is equal to the population mean (Xbar is an estimator of the population mean) unbiasedness 3.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
C. Properties of Good Estimators 1. The estimator should be unbiased its expected value should equal the parameter (population mean and population variance) it is estimating.
Background image of page 2
2. Given that the estimator is unbiased it should have the smallest variance possible be most efficient a. Efficient – The smallest variance possible QUESTION : Which estimator would you rather use to estimate the population mean (u)? ANSWER:
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/03/2009 for the course ECON 203 taught by Professor Casler during the Spring '09 term at Allegheny.

Page1 / 8

2-11-09 - Economic Statistics Class Notes 2/11/09...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online