Emma borrows $2,500 from her bank to buy a used car. The loan has a 5.4% annual simple interest rate. If it takes Emma 9 months
2 answers:
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Answer:
a) In order to check if an estimator is unbiased we need to check this condition:
And we can find the expected value of each estimator like this:
So then we conclude that is unbiased.
For the second estimator we have this:
And then we conclude that is unbiaed too.
b) For this case first we need to find the variance of each estimator:
And for the second estimator we have this:
And the relative efficiency is given by:
Step-by-step explanation:
For this case we assume that we have a random sample given by: and each
Part a
In order to check if an estimator is unbiased we need to check this condition:
And we can find the expected value of each estimator like this:
So then we conclude that is unbiased.
For the second estimator we have this:
And then we conclude that is unbiaed too.
Part b
For this case first we need to find the variance of each estimator:
And for the second estimator we have this:
And the relative efficiency is given by: