We wish to estimate an unknown quantity Θ. Our measuring equipment produces an observation of the form X-Θ3 + W, where W is a noise term which is small relative to the range of Θ. Which type of linear estimator is preferable in such a situation?
2 answers
Theta hat = a X^1/3 + b
btw options were not stated :)
they are:
(a) Θˆ=𝑎𝑋+𝑏
(b) Θˆ=𝑎𝑋3+𝑏
(c) Θˆ=𝑎𝑋1/3+𝑏
they are:
(a) Θˆ=𝑎𝑋+𝑏
(b) Θˆ=𝑎𝑋3+𝑏
(c) Θˆ=𝑎𝑋1/3+𝑏