Suppose that X1 and X2 are independent random variables with
E(X1) = E(X2) = μ
and
Var(X1) = Var(X2) = 1
Show that the point estimate Xx + X2

has a smaller mean square error than the point estimate

when
|μ - 10| ‰¤ ˆš6/2
Why would you expect 1 to have a smaller mean square error than 2 when μ is close to 10?

Transcribed Image Text:

A1 4