slides_Ch5_W[1]

Example unbiasedness melissa tartari yale

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: e or small. EXAMPLE: Unbiasedness Melissa Tartari (Yale) Econometrics 3 / 27 A Review of Finite sample properties Finite sample properties of estimators are properties that hold for a sample of any size, no matter how large or small. EXAMPLE: Unbiasedness De…nition: An estimator W of θ is unbiased if, for all possible values of θ , E [W ] = θ Melissa Tartari (Yale) Econometrics 3 / 27 A Review of Finite sample properties Finite sample properties of estimators are properties that hold for a sample of any size, no matter how large or small. EXAMPLE: Unbiasedness De…nition: An estimator W of θ is unbiased if, for all possible values of θ , E [W ] = θ Meaning: if we could inde…nitely draw random (…nite) samples on Y from the population, compute an estimate each time, and then average them over all samples, we would obtain θ . Unbiasedness does not mean that the estimate we get with any particular sample is equal to θ or even close to it! Unbiasedness only ensures that the sampling distribution of W has mean value equal to the parameter it...
View Full Document

This note was uploaded on 02/13/2014 for the course ECON 350 taught by Professor Donaldbrown during the Fall '10 term at Yale.

Ask a homework question - tutors are online