Explanation:
One of the most confusing aspects in the statistical nomenclature is the use of the words estimator and estimate. Many confuse the two. The estimator is the formula that is used to generate an estimate. The estimate is simply a number, but the estimator is a rule.
(Book 2, Module 16.1, LO 16.c)
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Question 6
The director of analytics at Investment Measurements, Inc. is updating the company's new employee training manual, which is provided to all new employees as part of the onboarding process. Previous new hires have said that the older versions of the manual were confusing with respect to distinguishing between an estimate and an estimator in the Performing Basic Statistics section. Which of the following do you recommend the director to incorporate in the new training manual?
A
An estimator is the formula used to calculate a specific number, which is the estimate.
B
An estimator is the formula used to calculate a specific number—the estimate, which is always unbiased.
C
An estimator is a number calculated from the unbiased estimate formula.
D
An estimator is considered BLUE, but an estimate is considered RED.
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