Answer Happy

4. You and a colleague are trying to determine the average amount of retirement savings among workers at your firm. Your colleague says, “My estimator for the average is $25,000.” Based on the definition of an estimator, describe what is wrong about this statement. 5. Suppose the population distribution for Y has a mean of 10 and a variance of 16. What is the mean and variance of Y from an i.i.d. sample from the population when i) n=10, ii) n=100, and c) n=1000. In words, relate your answer to the law of large numbers. 6. What role does the Central Limit Theorem play in statistical hypothesis testing? In constructing confidence intervals?