CFA Practice Question

CFA Practice Question

Which of the following are true regarding the sample mean?

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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