Page 7 - FINAL CFA SLIDES DECEMBER 2018 DAY 4
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Session Unit 3:
11. Sampling and Estimation
LOS 11.g: Identify and describe desirable properties of an estimator, p255
Unbiased estimator –no expected SE - the EV of the sample mean, E(¯x) = the population mean, μ.
Efficient estimator -variance of its sampling distribution is smaller than all the other unbiased
estimators of the parameter.
A consistent estimator -the accuracy of the parameter estimate increases as the sample size
increases -as the sample size approaches infinity, the standard error approaches zero.
LOS 11.h: Distinguish between a point estimate and a confidence interval (CI)
estimate of a population parameter, p.255
Point estimates e.g. sample mean, x, is an estimator of the population mean µ.
A CI is a range of values in which the population parameter is expected to lie.
