Explanation:
An unbiased estimator has an expected value equal to the true value of the population parameter. A consistent estimator is more accurate the greater the sample size.
(Book 2, Module 16.1, LO 16.d)
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Question 98 A financial analyst has been asked to estimate the volatility of a technology stock index. He has identified a statistic that has an expected value equal to the population volatility and has determined that increasing his sample size will decrease the sampling error for this statistic. The analyst's statistic can best be described as:
A
unbiased and nonlinear.
B
unbiased and consistent.
C
nonlinear and consistent.
D
unbiased only.
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