There are __________ Federal Reserve Districts

Based on the following data for the country of Tiny Town, the unemployment rate equals Population = 100 Labor force = 80 Number of employed persons = 70 Number of discouraged workers = 5

A) 10/100 × 100. B) 10/80 × 100. C) 15/80 × 100. D) 5/70 × 100.

Unbiasedness and small variance are desirable properties of estimators

However, you can imagine situations where a trade-off exists between the two: one estimator may be have a small bias but a much smaller variance than another, unbiased estimator. The concept of "mean square error" estimator combines the two concepts. Let be an estimator of ?. Then the mean square error (MSE) is defined as follows: MSE( ) = E( – ?)2. Prove that MSE( ) = bias2 + var( ). (Hint: subtract and add in E( ) in E( – ?)2.) What will be an ideal response?