To estimate a variance 2 you have an estimate b 2 10 with standard error s
Question:
To estimate a variance ¾2 you have an estimate b¾
2 Æ 10 with standard error s
¡
b¾
2¢
Æ 7.
(a) Construct the standard 95% asymptotic confidence interval for ¾2.
(b) Is there a problem? Explain the difficulty.
(c) Can a similar problem arise for estimation of a probability p?
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