If a sampling distribution is centred on the true population parameter but has unnecessary spread, which property should be improved?

Correct answer: B. Precision

  • A. Unbiasedness
  • B. Precision
  • C. Representativeness
  • D. Randomization

Explanation

An estimator can be unbiased while still having high variance. Reducing its spread improves precision, whereas unbiasedness concerns whether its average value equals the true parameter.

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