An estimate of beta1 is said to be unbiased if
A) Beta1-hat is normally distributed
B) The coefficient distribution is narrow.
C) The average value of the distribution of B1-hat is equal to the true value.
D) The coefficient distribution is wide.

Question

Quizplus · Accepted Answer

An estimate of beta1 is said to be unbiased if the average value of the distribution of B1-hat is equal to the true value. This means that on average, the estimator does not overestimate or underestimate the true parameter value. The normal distribution (A) and the width of the coefficient distribution (B and D) do not necessarily determine bias.

An Estimate of Beta1 Is Said to Be Unbiased If