Exam MAS-I Practice Question 43
Study guide: Exam MAS-I
Losses are uniformly distributed on (0, \theta), and the largest of n observed losses, X_{(n)}, is used to estimate \theta. Its expected value is n\theta/(n+1), below \theta for every n.
True or false: because X_{(n)} is biased for every sample size, it does not converge in probability to \theta, so it is not a consistent estimator of \theta.
- A) True
- B) False
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