Question
It is known that an estimator for variance ( 2) based on dividing by the sample size is biased, whereas an estimator (2) based on
It is known that an estimator for variance ( 2) based on dividing by the sample size is biased, whereas an estimator (2) based on dividing by 1 is unbiased. In statistics, bias is measured as the mean of the estimator minus the true value of the parameter being estimated. Answer the following questions in the context of estimating the population variance. Assume that the population is Normal with mean =0 and variance 2=100. The sampling distribution of 2 is obtained using simulation of 1000 SRSs of size =10. The mean of the simulated sampling distribution is 90. (Use decimal notation. Give your answers to two decimal places if necessary.)
(a) What is the bias value of 2 for this setting?
(b) Suppose that2=200and=50.Without using simulation, determine the bias valueof 2.
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