- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 5. Sampling and Estimation
- Subject 4. Point Estimates of the Population Mean
CFA Practice Question
Which of the following statements is correct?
B. Consistency can be referred to as probability in convergence.
C. Unbiasedness is a desirable property of estimators because it means that the expected value of the estimators is the parameter it is intended to estimate.
A. An efficient estimator is one that maximizes variance.
B. Consistency can be referred to as probability in convergence.
C. Unbiasedness is a desirable property of estimators because it means that the expected value of the estimators is the parameter it is intended to estimate.
Correct Answer: C
Statements A and B are incorrect. Efficient estimators minimize variance. Consistency is also called convergence in probability.
User Contributed Comments 3
| User | Comment |
|---|---|
| Shalva | "Convergence in probability" - to be memorized |
| AUAU | What is "Convergence in Probability" ? |
| Jurrens | the more samples, the more you converge to the probability of accuracy, think of distribution curves |