- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 7. Estimation and Inference
- Subject 1. Sampling Methods
CFA Practice Question
If the sampling distribution of a sample statistic has a mean equal to the population parameter the statistic is intended to estimate, the statistic is said to be ______.
B. an unbiased estimate of the parameter
C. a low standard error of the statistic
A. a point estimation of the parameter
B. an unbiased estimate of the parameter
C. a low standard error of the statistic
Correct Answer: B
User Contributed Comments 5
| User | Comment |
|---|---|
| isida | An unbiased estimator is one for which the expected va;ue of the estimator is equal to the parameter you are trying to estimate. so, if the expected value of the sample mean is equal to the population mean, the sample mean is an unbiased estimator of the population mean. |
| Shammel | Why exactly is A and C wrong? |
| thekid | C is wrong b/c it says "a LOW standard of error", it should be "a ZERO standard of error" BUT.. I have no clue why 'A' is incorrect! |
| Jurrens | this is a "choose the best answer" question |
| johntan1979 | It is EQUAL, no longer a point estimate. |