Why is a point estimate alone insufficient for providing a probabilistic estimate of a parameter?
A) Because a point estimate only estimates the parameter, it will never provide us with its value.
B) Although the point estimate provides a good guess for the parameter, it is a single value and, for a continuous variable, the probability the parameter equals this single value is 0.
C) The calculation of the point estimate is too fraught with uncertainty to provide an accurate probability estimate.
D) A point estimate is too static to accurately estimate a dynamic parameter.

Question

Quizplus · Accepted Answer

A point estimate only gives a single value for the parameter, but for most continuous variables, the probability that the parameter equals this single value is 0. Therefore, a probability distribution is needed to provide a range of possible values, along with the probabilities associated with each value.

Why Is a Point Estimate Alone Insufficient for Providing a Probabilistic