UW-Madison Economics 310 Chapter 10

Point Estimator - ANS Estimates the value of an unknown parameter using a single value Interval Estimator - ANS Draws inferences about a population parameter using an interval Unbiased Estimator - ANS Has an expected value (long-run average) which equals the parameter being estimated Consistent - ANS Approaches the value of the parameter it is estimating as the sample size increases Relative Efficiency - ANS If there are two unbiased estimators of a parameter, the one whose variance is smaller is said to have relative efficiency Confidence Interval Estimator of μ - ANS -Estimates the value of an unknown parameter using an interval -If the confidence interval estimator does not contain μ₀, the null hypothesis is rejected Confidence Level - ANS -The degree of certainty we have that our interval contains the value of the parameter