Point Estimation Flashcards
Define a point estimator
Note: random variables are called estimators, the specific value for a specific sample is the estimate
Describe unbiasedness as a property when measuring the effectiveness of an estimator
Describe consistency as a property when measuring the effectiveness of an estimator
Describe efficiency as a property when measuring the effectiveness of an estimator
Describe standard error as a property when measuring the effectiveness of an estimator
Describe the Least Squares Estimator (LSE) method of estimation
- Minimise the sum of (Xi-E(X))2
- Derive this sum wrt the parameter
- Set the differential to 0
Describe the Method of moments estimators (MME) method of estimation
- Determine the number of unknown parameters (r)
- Express r parameters as population moments (θ)
- Express r parameters as sample moments (θˆ)
- Express θ^ as functions of the sample moments
Define population moments
Define sample moments
Define the likelihood function
Describe the Maximum Likelihood Estimators (MLE) method of estimation
Differentiate L(θ) or lnL(wrt θ and set the derivative to 0
Describe an alternative method for working out the MLE
Differentiate l(θ) wrt θ and set the derivative to 0