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Finance Stats: Unbiased Estimators, Efficiency, Confidence Intervals, Bank Deposits, Study Guides, Projects, Research of Finance

University of Glasgow Finance

The concepts of unbiased estimators and efficiency for the sample mean in statistics, with a focus on the normal distribution. It also includes instructions for calculating a 90% confidence interval for the mean and applying these concepts to compare the mean weekly deposits of two banks using a 95% confidence interval.

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Download Finance Stats: Unbiased Estimators, Efficiency, Confidence Intervals, Bank Deposits and more Study Guides, Projects, Research Finance in PDF only on Docsity! Basic Statistics for Finance Tutorial 6 1. The random variable X ~ N( μ x denote the sample mean. , σ 2 ). A random sample of n observations is drawn. Let X (i) Explain what is meant by the statement that X is an unbiased estimator of μx. (ii) Explain the meaning of the statement that X is efficient. 2. Suppose that, for the random variable defined in question 1, Obtain a 90% confidence interval estimate for μx. 2 = 81, n = 25 and X = 10.2 .

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Finance Stats: Unbiased Estimators, Efficiency, Confidence Intervals, Bank Deposits, Study Guides, Projects, Research of Finance

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