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Results tagged with unbiased-estimator
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user 68473
Refers to an estimator of a population parameter that "hits the true value" on average. That is, a function of the observed data $\hat{\theta}$ is an unbiased estimator of a parameter $\theta$ if $E(\hat{\theta}) = \theta$. The simplest example of an unbiased estimator is the sample mean as an estimator of the population mean.
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When is a biased estimator preferable to unbiased one?
It's obvious many times why one prefers an unbiased estimator. But, are there any circumstances under which we might actually prefer a biased estimator over an unbiased one?
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