CFA Practice Question

There are 434 practice questions for this study session.

CFA Practice Question

An estimator is efficient if ______
A. the expected value of the estimate equals the population parameter.
B. no other unbiased estimator of the same parameter has a sampling distribution with smaller variance.
C. the estimator gets better as we use more data.
Explanation: An estimator is efficient if no other estimator of the same parameter has a sampling distribution with a smaller variance.

User Contributed Comments 2

User Comment
Dermot81 In Schweser, "An unbiased estimator is one for which the expected value of the estimator is equal to the parameter you are trying to estimate."

I'll listen to Schweser.
nike Schweser is right about an unbiased estimator and analystnotes is also right about an efficient estimator.

For this question, the answer should be related to "efficient".
You need to log in first to add your comment.