Which statement best describes a consistent estimator?

Correct answer: B. It approaches the parameter as sample size grows

  • A. It always equals the parameter
  • B. It approaches the parameter as sample size grows
  • C. It has zero variance in every sample
  • D. It is necessarily unbiased in small samples

Explanation

An estimator is consistent when its estimates approach the true population parameter as the sample size increases. Consistency does not require the estimator to be exactly correct in every sample or unbiased in small samples.

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