CFA Practice Question
Which of the following are true regarding the sample mean?
II. The sample mean, xbar, is an efficient estimator of the population mean, μ.
III. The sample mean, xbar, is a consistent estimator of the population mean, μ.
I. The sample mean, x-bar, is equal to the population mean, μ.
II. The sample mean, xbar, is an efficient estimator of the population mean, μ.
III. The sample mean, xbar, is a consistent estimator of the population mean, μ.
A. I and II.
B. II and III.
C. I and III.
Explanation: I is false because the sample mean is not necessarily equal to the population mean. It would be true if the statement were: "The expected value of the sample mean, xbar, is equal to the population mean, mu." The other statements are true.
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