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Unformatted text preview: not the case, it is called a biased estimator and it produces biased
estimates. E (θ) − θ is called the bias.
Unbiasedness of an estimator is a desired property. But not the only one. Utku Suleymanoglu (UMich) Sampling Distributions 20 / 21 Properties of Estimators Eﬃcieny of An Estimator If we have two unbiased estimators, we can compare their precision by comparing the
sampling variances. The one with the smaller SE measures the population parameter
more precisely. It is called to be a more eﬃcient estimator.
Eﬃcieny of An Estimator
If two estimators θ and θ are both unbiased esti...
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This note was uploaded on 03/17/2014 for the course ECON 404 taught by Professor Staff during the Spring '08 term at University of Michigan.
- Spring '08