CFA Practice Question

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CFA Practice Question

Which of the following statements is correct?

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
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