How is the efficiency of estimators defined?
A)An estimator is efficient if its expected value equals the estimated population parameter.
B)An efficient estimator approaches the estimated population parameter as the sample size grows larger.
C)An estimator is efficient if it always gives the correct value of the estimated population parameter.
D)An unbiased estimator is efficient if its standard error is lower than that of other estimators of the estimated population parameter.

Question

Quizplus · Accepted Answer

The efficiency of an estimator is defined as its ability to estimate the population parameter accurately with minimum variability. An unbiased estimator is efficient if its standard error is lower than that of other estimators of the estimated population parameter. Therefore, option D is the correct answer. Option A measures bias, option B measures consistency, and option C measures accuracy, but none of these define efficiency.

How Is the Efficiency of Estimators Defined