Desirable Estimator Properties: Unbiased Coefficient Estimate

Question 1

Definition:

Answer 1

E (Bhat)=B B as in Beta

Question 2

Interpretation:

Answer 2

On average, the sample parameter estimate is equal to the

population parameter.

Question 3

Implications of absence …for hypothesis testing:

Answer 3

If the direction of bias is unknown, hypothesis testing is not possible. If the direction of bias is known, a bound on the hypothesis test can be established.

Question 4

Implications of absence…for forecasting:

Answer 4

Possible

Question 5

Implications of absence…for sensitivity :

Answer 5

If the direction of bias is unknown, sensitivity analysis is not possible. If direction of bias is known, a bound on the sensitivity can be established.