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Question: Refer to Exercise 5.5, in which we found the sampling distribution of the sample median. Is the median an unbiased estimator of the population mean m?

Short Answer

Expert verified

Yes, the median is an unbiased estimator of the population mean “m”.

Step by step solution

01

List of probabilities

The list of the probabilities found in Exercise 5.5 corresponding to the respective mean is shown below.

Mean

Probability

1

0.04

1.5

0.12

2

0.17

2.5

0.20

3

0.20

3.5

0.14

4

0.08

4.5

0.04

5

0.01

02

Determination of the biasedness of the median

The calculation of the meanandis shown below.

μx=xp(x)=1(0.2)+2(0.3)+3(0.2)+4(0.2)+5(0.1)=2.7

E(m)=Emp(m)=1×0.04+1.5×0.12+2×0.17+2.5×0.20+3×0.20+3.5×0.14+4×0.08+4.5+0.04+5×0.01=0.04+0.18+0.34+0.5+0.6+0.49+0.32+0.18+0.05=2.7

As the value oflocalid="1661429803872" μandlocalid="1661429812869" E(m)is 2.7 each, solocalid="1661429822357" mis an unbiased estimator oflocalid="1661429831113" μ.

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Most popular questions from this chapter

Question: Refer to Exercise 5.3.

  1. Show thatxis an unbiased estimator ofμ.
  2. Findσx2.
  3. Find the x probability that x will fall within2σxofμ.

Variable life insurance return rates. Refer to the International Journal of Statistical Distributions (Vol. 1, 2015) study of a variable life insurance policy, Exercise 4.97 (p. 262). Recall that a ratio (x) of the rates of return on the investment for two consecutive years was shown to have a normal distribution, with μ=1.5, σ=0.2. Consider a random sample of 100 variable life insurance policies and letx¯represent the mean ratio for the sample.

a. Find E(x) and interpret its value.

b. Find Var(x).

c. Describe the shape of the sampling distribution ofx¯.

d. Find the z-score for the value x¯=1.52.

e. Find Px¯>1.52

f. Would your answers to parts a–e change if the rates (x) of return on the investment for two consecutive years was not normally distributed? Explain.

Cable TV subscriptions and “cord cutters.” According to a recent Pew Research Center Survey (December 2015), 15% of U.S. adults admitted they are “cord cutters,” i.e., they canceled the cable/satellite TV service they once subscribed to. (See Exercise 2.4, p. 72) In a random sample of 500 U.S. adults, let pn represent the proportion who are “cord cutters.”

a. Find the mean of the sampling distribution of p^.

b. Find the standard deviation of the sampling distribution of p^.

c. What does the Central Limit Theorem say about the shape of the sampling distribution of p^?

d. Compute the probability that p^is less than .12.

e. Compute the probability that p^is greater than .10.

The probability distribution shown here describes a population of measurements that can assume values of 0, 2, 4, and 6, each of which occurs with the same relative frequency:

  1. List all the different samples of n = 2 measurements that can be selected from this population. For example, (0, 6) is one possible pair of measurements; (2, 2) is another possible pair.
  2. Calculate the mean of each different sample listed in part a.
  3. If a sample of n = 2 measurements is randomly selected from the population, what is the probability that a specific sample will be selected.
  4. Assume that a random sample of n = 2 measurements is selected from the population. List the different values of x found in part b and find the probability of each. Then give the sampling distribution of the sample mean x in tabular form.
  5. Construct a probability histogram for the sampling distribution ofx.

A random sample of n= 300 observations is selectedfrom a binomial population with p= .8. Approximateeach of the following probabilities:

  1. Pp^<0.83
  2. Pp^>0.75
  3. P0.79<p^<0.81
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