7. Two economics professors are arguing about the appropriate estimator to use in estimating the mean of
Question:
7. Two economics professors are arguing about the appropriate estimator to use in estimating the mean of the population distribution of incoming freshmen's LQ.'s.
The estimators will be based on a random sample from the population distribution. One professor suggests that they simply calculate the sample mean LQ., Xn , and use it as an estimate of the mean of the population distribution.
The other prefers to use an estimator of the form t(X) = 'L7=1 Xd(n + k), where n is the random sample size and k is some positive integer, and she argues that her estimator has less variance than the sample mean and that for an appropriate choice of k, her estimator would be superior on the basis of MSE.
Step by Step Answer:
Mathematical Statistics For Economics And Business
ISBN: 9780387945873
1st Edition
Authors: Ron C. Mittelhammer