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# Example unbiasedness melissa tartari yale

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

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