UNIT 6

UNBIASEDNESS

Structure
6.1 Introduction 6.6 Summary
Expected Learning Outcomes 6.7 Terminal Questions
6.2 Basic Terminology 6.8 Solutions /Answers
6.3 Properties of Good Estimator
6.4 Unbiasedness
6.5 Properties of Unbiased
Estimator
6.1 INTRODUCTION
In many real-life problems, the population parameter (characteristic of the
population) is not known and someone is interested in obtaining the value of Tools You Will Need
the parameter. But, if
The following terms are
• the whole population is too large to study, considered essential
background material for
• the units of the population are destructive in nature,
this Unit. If you doubt your
• there are limited resources and manpower available, etc. knowledge of any of these
terms, you should review
then it is not practically convenient to examine each unit of the population to
the appropriate Unit or
find the value of the parameter. For example, as you know many of us use
section before proceeding:
Facebook and you are interested to know the average age of the people who
use Facebook. However, the true value (average age) of Facebook users is • Sampling distributions
not known. The only way to know the true average age of Facebook users is (Units 2,3, 4 and 5).

to survey each and every person in the world who uses Facebook. But it is not • Probability distributions
possible to survey everyone in the world. In such a situation, one can select (MST-012).
randomly some persons who use Facebook and note their age. Suppose we
randomly selected 20 Facebook users and obtained the following data of their
age (in years):

20 42 36 30 20 52 32 18 70 22

45 18 40 16 18 20 30 19 41 20

If we use the sample average age to estimate the unknown average age of the
Facebook users, then we get an estimate of the same as
163
Unit Writer- Dr. Prabhat Kumar Sangal, School of Sciences, IGNOU, New Delhi
Block 2 Properties of Good Estimator
n
1 607
X
= ∑ =
n i=1
Xi = 30.25
20

Estimating is not something new to us. Every one of us uses an estimate in

our day-to-day life. Some situations are as follows:
• At the metro station of Delhi, a guard may estimate the height of a child to
be 3 feet or longer.
• Lavnik estimates the time to reach his school from home is about 20
minutes.
• A family estimates the monthly expenditure on the basis of particular
needs.
• The distance between New Delhi and Gujrat is approximately 1112 km.
So, the question is, what is an estimation?
The technique of finding an estimator to produce an estimate
(approximate value) of the unknown parameter of the population on the
basis of a sample is called estimation.
As its name suggests, the objective of estimation is to determine the
Any statistic used to approximate value of a population parameter on the basis of a sample
estimate an unknown statistic.
population parameter is There are two methods of estimation:
known as estimator and
the particular value of the
1. Point Estimation
estimator is known as 2. Interval Estimation
estimate of parameter.
In point estimation, we determine an appropriate single statistic whose value is
The estimated value of
used to estimate the unknown parameter whereas, in interval estimation, we
sample mean and sample
determine an interval that contains the true value of the unknown parameter
variance are denoted by
with a certain confidence. For example, in the case of Facebook users, we get
x and S2, respectively.
the point estimate as 30.25 years because we estimated it by only one value
(30.25 years) whereas if we estimate the same as the age group (18, 34) uses
Facebook then it is an interval estimation because we estimated it by using an
interval (18, 34) age. The point estimation and interval estimation are briefly
described in Units 10-11 and Units 12-14, respectively.
Estimation admits two problems:

• The first is to select some criteria or properties such that if an estimator

possesses these properties then it is called the best estimator among
possible estimators, that is, properties of a good estimator, and

• The second is to derive some methods or techniques through which we

obtain an estimator which possesses such properties, that is, methods of
estimation.

Units 6, 7, 8 and 9 are devoted to describing the properties of a good

estimator in detail, however, Units 10, 11, 12, 13 and 14 explain the methods
of estimation.

This unit is divided into nine sections. Section 6.1 is introductory in nature. The
164 basic terms used in estimation are defined in Section 6.2. Section 6.3 is
Unit 6 Unbiasedness

devoted to explaining the criteria of a good estimator. Section 6.4 explores the
concept of unbiasedness with examples. The properties of an unbiased
estimator are described in Section 6.5. The unit ends by providing a summary
of what we have discussed in this unit in Section 6.6. The terminal questions
and the solution of the SAQs/TQs are given in Sections 6.7 and 6.8,
respectively.
In the next unit, we shall discuss the second characteristic of a good estimator,
that is, consistency.

Expected Learning Outcomes

After studying this unit, you should be able to:
 define the parameter space;
 describe the properties of a good estimator;
 explain the unbiasedness characteristic of an estimator;
 check whether an estimator is unbiased or not; and
 describe the properties of an unbiased estimator.

6.2 BASIC TERMINOLOGY

Before discussing the properties of a good estimator, we discuss basic
definitions of some important terms. These terms are very useful in
understanding the fundamentals of the theory of estimation discussed.
Discrete and Continuous Distributions
In Units 9 to 16 of MST-012, we have discussed standard discrete and
continuous distributions as binomial, Poisson, normal, exponential, etc. We
know that a population can be described with the help of a distribution,
therefore, standard discrete and continuous distributions are also used in
statistical inference. Here, we discuss some standard discrete and continuous
distributions in brief as in tabular form and you have to learn at least the mean
and variance of these distributions which will pay you to do the estimation
questions easily.
S. No. Distribution Parameter(s) Mean Variance
Bernoulli (discrete)
1 1− x p p p(1 – p)
P[X = p x (1 − p )
x] = ; x=
0,1

Binomial (discrete)
2 n n− x n&p np np(1 – p)
P[X =
x] = Cxp x (1 − p ) ; x=
0,1,...,n

Poisson (discrete)
3 e−λ λ x λ λ λ
P [ X= x ]= ; x= 0,1,... ; λ > 0
x!
Uniform (discrete)
4 1 n
n +1 n2 − 1
P[X= x= ] ; = x 1,2,...,n 2 12
n
Hypergeometric (discrete)
M nM NM (N − M)(N − n )
5 Cx N−M Cn− x N, M & n
P[X ]
= x= x 0,1,...,min {M,n}
;= N N2 (N − 1)
N
Cn 165
Block 2 Properties of Good Estimator

Geometric (discrete) p p
6 p
P[X =
x] =
p (1 − p ) ; x =
0,1,2,...
x (1 − p ) (1 − p )2
Negative Binomial (discrete)
rp rp
7  x + r − 1 r r&p
P[X =
x] =

x
 p (1 − p ) ; x =
0,1,2, ... (1 − p ) (1 − p )2
 r −1 

Normal (continuous)
2
1  x −µ 
−  
8 1 2 µ & σ2 µ σ2
= f (x) e  σ  ; − ∞ < x < ∞;
σ 2π
σ > 0, − ∞ < µ < ∞

Standard Normal (continuous)

1
9 1 − x2 -- 0 1
= f (x) e 2 ; −∞ < x < ∞
2π

Uniform (continuous)
10 1 a&b
a+b ( b − a )2
f (x)
= ; a < x < b,b > a 2 12
b−a

Exponential (continuous) 1 1
11 −θx θ
f ( x ) = θe ; x ≥ 0; θ > 0 θ θ2
Negative Exponential or simply exponential
(continuous)
x θ θ θ2
1 −θ
=f (x) e ; x ≥ 0; θ > 0
θ

Gamma (continuous)
b b
12 ba −bx a −1 a&b
f (x)
= e x ; x > 0;a,b > 0 a a2
a
Beta First Kind (continuous)
1 b −1 a ab
=
.13 f (x) xa −1 (1 − x ) ; 0 < x < 1; a&b 2
B ( a,b ) a+b ( a + b ) ( a + b + 1)
a > 0,b > 0

Beta Second Kind (continuous)

a a ( a + b + 1)
14 1 xa −1 a&b
= f (x) ; x > 0; a,b > 0 b −1 (b − 1)2 (b − 2)
B ( a,b ) (1 + x )a +b

Standard Cauchy
Does
1
15=f (x) ; −∞ < x < ∞ --- not Does not exist
(
π 1 + x2 ) exist

Laplace
x −µ
16 1 − b µ&b µ 2b2
= f (x) e ; −∞ < x < ∞
2b

Parameter Space
The set of all possible values that the parameter θ or parameters θ1, θ2, …, θk
can assume is called the parameter space. It is denoted by Θ and is read as
“big theta”. For finding the parameter space of a parameter, we have to think
all possible values of the parameter yet the chance of these is very very small.
166 For example, suppose the parameter θ represents the average life of electric
Unit 6 Unbiasedness

bulbs manufactured by a company. Since the bulb can be fused at the initial
time 0 or at 1, 2, 2.3, 3 hours, and so on, therefore, it lies from 0 to ∞. Hence,
the parameter space of the average life of the bulbs, that is, θ = is Θ {θ : θ ≥ 0} .
It means that the parameter average life θ can take all possible values greater
than or equal to 0, Similarly, in a normal distribution (μ, σ2), the parameter
space of parameters μ and σ
= 2
is Θ {(μ,σ 2
}
) : −∞ < μ < ∞; 0 < σ < ∞ .

Mathematical Expectation
If X is a continuous random variable having the probability density function
f ( x ) , then the expected value of X (mean) is defined as
∞ ∞
E ( X) = ∫ ( ) ∫x
x f ( x ) dx and E Xr = r
f ( x ) dx
−∞ −∞

If X is a discrete random variable having the probability mass function

p ( x ) , then the expected value of X is defined as
n n
E ( X) = ∑ ( ) ∑ x p(x )
xi p ( xi ) and E Xr = r
i i
i=1 i=1

Some properties of mathematical expectation are:

• E ( a ) = a where ‘a’ is a constant

• E ( aX ) = aE ( X )

• E ( aX ± bY=
) aE ( X ) ± bE ( Y )
Variance
If X is a random variable then the variance of X in terms of expectation is
defined as

Var ( X ) =
2
E  X − E ( X )  = ( )
E X2 − E ( X ) 
2

Some properties of variance are:

• Var ( a ) = 0

• Var ( aX ) = a2 Var ( X )

• If random variables X and Y are independent, then

Var ( aX ±=
bY ) a2 Var ( X ) + b2 Var ( Y )

Now, try the following Self Assessment Question.

SAQ 1
If θ represents the average marks (out of 50) of the learner in the Term-End-
Exam paper of the MST-016 course, then find the parameter space of θ.

After understanding the basic definition and terminology which will help you to
understand the properties of a good estimator. We now finally discuss the
properties of a good estimator in the next section. 167
 Block 2 Properties of Good Estimator

6.3 PROPERTIES OF GOOD ESTIMATOR

It is to be noted that a large number of estimators can be proposed for an
unknown parameter. For example, in our case of estimating the average age
of Facebook users, some possible estimators are:
607
• Sample mean=
X = 30.25
20

 22 + 30
• Sample median
= X = 26
2
• Sample mode X0 = 20

max + min 70 + 14
• Average of extreme=
users = = 42
2 2
Now, the questions arise,
• Which estimator should you use, that is, which is likely to give estimates
closer to the true (but unknown) population value?
• Are some of the possible estimators better, in some sense, than the
others?”
In general, an estimator whose sampling distribution concentrates as closely
Unbiasedness as possible near the true value of the parameter may be regarded as a good
estimator. To give the answer to the above questions, Prof. Ronald A. Fisher
gave some properties of a good estimator which are as follows:
Consistency • Unbiasedness
Characte • Consistency
ristics of
good • Efficiency
estimator
Efficiency • Sufficiency
We shall discuss these properties one by one in the subsequent Units.
Now, answer the following Self Assessment Question.
Sufficiency
SAQ 2
Write properties of a good estimator.

We now discuss the first characteristic of a good estimator in the next section.

6.4 UNBIASEDNESS
In the previous units, you have studied that any statistic such as sample mean,
Any statistic which is used
sample variance, sample proportion, etc. which is used to estimate an
to estimate an unknown
unknown population parameter is known as an estimator. You also saw that
population parameter is
the value of any estimator changes from sample to sample, therefore, we
known as estimator.
consider the estimator as a random variable and we can find the mean and
variance of the estimator. So we can define an estimator as an unbiased
estimator as:
An estimator is said to be unbiased for a population parameter if and only if
the average or mean of the sampling distribution of the estimator is equal to
168 the true value of the parameter. This property of the estimator is called
Unit 6 Unbiasedness

unbiasedness.
Let us see some examples,
• In Unit 1, you have seen that the mean of the sampling distribution of the
sample mean of monthly salary of the employees is equal to the mean
salary of all employees of the industry. So sample mean is an unbiased
estimate of the population mean.
• Similarly, in Unit 3, we saw that the mean of the sample proportions of the
children who like to dance is equal to the population proportion. Therefore,
sample proportion is an unbiased estimate of the population proportion.
In general, we denote any population parameter such as a population mean,
population standard deviation, population proportion, and so on by the Greek
letter theta θ, and its estimator such as the sample mean, sample standard
deviation, and sample proportion by T or θ̂ (pronounced as “theta-hat”).

Mathematically,
If X1 , X2 , ..., Xn is a random sample of size n taken from a population whose
probability density (mass) function is f(x,θ) where θ is the population
parameter then an estimator T = t(X1 , X2 , ..., Xn ) is said to be an unbiased
An estimator is said to be
estimator of the parameter θ if and only if unbiased if the expected
E(T) = θ value of the estimator is
equal to the true value of
for all possible values of the parameter θ.
the parameter being
However, if the expected value of the estimator does not equal to the true estimated.
value of the parameter, then the estimator is said to be a “biased estimator”,
that is, if
E(T) ≠ θ

then the estimator T is called the biased estimator of θ.

We can also define bias as
The distance between the estimate obtained from a sample and the actual
value of the population parameter from which the sample was taken is called
bias.
The amount of biases is given by
b(θ)
= E(T) − θ

• If b(θ) > 0 or E(T) > θ, then the estimator T is said to be positively biased
for the parameter θ.
• If b(θ) < 0 or E(T) < θ, then the estimator T is said to be negatively biased
for the parameter θ.
• If E(T) → θ as n → ∞ , that is, if an estimator T is unbiased for a large
sample only then the estimator T is said to be asymptotically unbiased for
1
θ. For example, suppose E(T) = θ + then as n → ∞,E(T) → θ .
n

An unbiased estimator is generally preferred in comparison to a biased 169

Block 2 Properties of Good Estimator

estimator.
Now, we explain the procedure to show whether an estimator is unbiased or
not for a parameter with the help of some examples.
Example 1: Show that the sample mean (X) is an unbiased estimator of the
population mean (µ) if it exists.
Solution: Let X1, X2, …, Xn be a random sample of size n taken from any
population with mean µ. We have to show that the sample mean X is an
unbiased estimator for µ, therefore, we have to find E(X) and check whether
it is equal to µ or not. That is,

( )
E X =μ

Consider,
 X + X2 + ... + Xn 
( )
E X =E 1
 n 

[By defination of the sample mean]

1
= E ( X1 ) + E ( X2 ) + ... + E ( Xn )   E ( aX + bY=
) aE ( X ) + bE ( Y )
n

Since X1, X2,…, Xn are randomly drawn from the same population with mean μ
and variance σ2, therefore,
E(X1=
) E(X2=
) ...= E(Xn=
) E(X)= μ

Thus,

1 
E(X)
=  μ + μ + ...=
+ μ  1=(nμ) μ
n      n
 n− times 

Hence, the sample mean (X) is an unbiased estimator of the population mean
μ. Also if x1 , x 2 , ..., xn are the observed values of the random sample
n
1
X1 , X2 , ..., Xn then x =
n
∑ xi is an unbiased estimate of the population mean.
i=1

Example 2: Suppose the speed of lightweight vehicles on a particular stretch

of roadway is normally distributed with a known standard deviation of 5 kph. A
researcher measured the speed of 10 lightweight vehicles randomly and
obtained the following results:

Vehicle 1 2 3 4 5 6 7 8 9 10
Speed
(in kph) 62 70 65 68 64 65 70 64 55 60

(i) Find the point estimate of the average speed.

(ii) Show that the sample average speed is an unbiased estimator of the
average speed of all the lightweight vehicles on the roadway.
Solution: Generally, to draw the inference about the population mean, we use
the sample mean, therefore, to find the point estimate of the average speed,
we use the sample mean.
170 We can obtain the point estimate of average speed as
Unit 6 Unbiasedness

1 n X1 + X2 + ... + Xn
=X =
n i=1
Xi ∑ n

62 + 70 + 65 + 68 + 64 + 65 + 70 + 64 + 55 + 60
= 64.3
10
Now, we have to show that the sample average speed is an unbiased estimate
of the average speed of all lightweight vehicles on the roadway.
Since the speed of the vehicles is normally distributed and standard deviation
(σ) is known, therefore, the sample average speed also follows a normal
distribution with mean µ and variance σ2/n.

( )
Thus, E X = μ

Hence the sample average speed is an unbiased estimate of the average

speed of all lightweight vehicles on the roadway.
Example 3: A machine produces a large number of water bottles. A quality
inspector selected 40 water bottles randomly and found 2 defective water
bottles. Find the point estimate of the proportion of all defective water bottles.
Solution: To draw the inference about the population proportion, we use the
sample proportion, therefore, to find the point estimate of the proportion of all
defective water bottles, we use sample proportion defectives.
Therefore, we can obtain the point estimate of the proportion of all defective
water bottles as
X 2
p
= = = 0.05
n 40

Hence, the point estimate of the proportion of all defective water bottles is
0.05.
Example 4: A furniture company manufacturing square tables of a side length
µ. Thus, the area of the table will be µ2 (unknown). Based on n independent
measurements X1, . . . , Xn of the length, estimate area of the table. Assume
that the measurements of the length have mean µ and variance σ2.

(i) Show that X2 is not an unbiased estimator for µ2.

2 2
(ii) For what value of k, is the estimator X − kS unbiased for µ2?

Solution: Since the measurements of the length have mean µ and variance
σ2, therefore, the sampling distribution of mean has mean and variance as
follows:

σ2
( )
E X = μ and Var ( X ) =
n

We have to show that X2 is not an unbiased estimator for µ2, therefore, we

have to find E(X2 ) and check whether it is equal to µ2 or not. But the question
is how we find the E(X2 ) without knowing the sampling distribution of X2 .
However, we know that

σ2
( )
Var X =
n
and by the formula of variance, we have
171
Block 2 Properties of Good Estimator

( )
2
Var
= ( )
X E X2 − E X 
  ( )
Therefore,

σ2
( )
2
E X2 = Var X + E X  =
  ( )
n
+ μ2 ≠ μ2 ( )
Hence, X2 is not an unbiased estimator of the area of the table, that is, µ2
and we can calculate the bias of the estimator as

σ2 σ2
( )
E X2 − μ2 =
n
(
⇒ E X2 − μ2 =
n
)  E ( a ) = a 

We now find the value of k such that the estimator X2 − kS2 is unbiased for µ2.

Since the estimator X2 − kS2 is unbiased for µ2, therefore,

(
E X2 − kS2 =
μ2 )
( )
E X2 − kE S2 = μ2 ( )  E ( aX ± bY=
) aE ( X ) ± bE ( Y )
σ2
μ2 + μ2 [since S2 is an unbiased estimator of σ2,i.e. E(S2)= σ2]
− kσ 2 =
n
Therefore,
1
k=
n
1 2 2
Hence, for k = , the estimator X − kS is unbiased for µ2.
n
Example 5: If X1 , X2 , ..., Xn is a random sample taken from a population with a
mean μ and variance σ2, then
n
∑ ( Xi )
1 2
=S′2 −X is a biased estimator of σ2.
n i=1

n 1 n
∑( )
2
whereas,
= S2 ′2 i.e. S2
S= Xi − X is an unbiased estimator of
n −1 n − 1 i=1
σ2.
2
Solution: We have to show that S′ is not an unbiased estimator for σ2,
therefore, we have to find E(S′2 ) and check whether it is equal to σ2 or not.
Therefore, we consider:

1 n 2 1  n 2
( )
S′2 E 
E =
n
Xi − X= E
 n  ∑(
Xi − X ) ∑( )   E (=
aX ) aE ( X ) 
=  i 1=  i 1 

1  n  1  n 2 n 2 n 
= E

n i 1
∑(
Xi2 + X2 −=
2Xi X 

E  Xi +

n  i 1 =i 1
)
X − −2X Xi 
 ∑ ∑ ∑
=  = =i 1 

1  n 2   1 n n 
= ∑
E  Xi + nX2 − 2XnX 
n  i=1    X = Xi ⇒
n i 1 =i 1
∑ ∑
Xi = nX 
  = 
172
Unit 6 Unbiasedness

1  n 2  1  n 2 
= E =∑
n  i=1
Xi − nX2 
 n   ∑
E  Xi  − nE X2 

( )
   i=1 

1 n 
= ∑ ( ) 2 2
 E Xi − nE X 
n  i=1 
( )
1 n 2  σ2 
= ∑(

n  i=1
)
μ + σ 2 − n  μ2 +
 
n  
[ As discussed in Example 4]


1  2 σ2 
= (2 2
)
n μ + σ − n  μ +
n 

n  


σ2 n − 1 2
= μ2 + σ 2 − μ2 − = σ
n n

E S′2
= ( ) n −1 2
n
σ ≠ σ2

2
Hence, S′ is not an unbiased estimator for σ2.
Now, we check whether S2 is unbiased of σ2 or not, therefore, we consider:

E S2
= ( ) =
n
n −1
( )
E S′2
n n −1 2
=
n −1 n
σ σ2

Hence, estimator S2 is an unbiased estimator for σ2.

2 2
This is the reason why we consider S in place of S′ for estimating the sample
variance.
Now, you can assess your understanding by answering the following Self
Assessment Question.

SAQ 3
a. A company produces batteries for laptops and wants to estimate the
average life of the battery. For that, the statistician of the company
selected 5 batteries from the production and measured their lives. He
suggests two estimators for estimating the average life of the battery:

X1 + X2 + X3 + X4 + X5 X1 + 2X2 + 3X3 + 4X4 + 5X5

T1 = , T2
5 15

where X1, X2, X3, X4 and X5 repersent life of the selected batteries. It is
known that the life of batteries has mean μ and variance σ2. Are both
estimators unbiased?
b. Show that the sample mean and sample median are both unbiased
estimators for mean (μ) of a normal distribution.

6.5 PROPERTIES OF UNBIASED ESTIMATOR

After understanding the concept of unbiasedness and how to check whether
an estimator is unbiased or not, we now discuss some properties of the
unbiased estimator as follows: 173
Block 2 Properties of Good Estimator

1. Unbiased estimators may not be unique. For example, the sample mean
and sample median are unbiased estimators of the population mean of a
normal population.

2. Unbiased estimators do not always exist for all parameters. For example,
for a Bernoulli distribution (θ), there is no unbiased estimator for θ2.
Similarly, for a Poisson distribution (λ), there exists no unbiased estimator
for 1/ λ.

3. If an estimator is unbiased for all types of distribution, then it is called an

absolutely unbiased estimator. For example, the sample mean is an
absolutely unbiased estimator of the population mean, if the population
mean exists.

4. If T and T* are two unbiased estimators of the parameter θ then

aT+ (1−a) T*
is also an unbiased estimator of θ where ‘a’ (0 ≤ a ≤ 1) is any constant.

For a better understanding of the unbiasedness try Self Assessment

Questions.

SAQ 4
Some patients with high blood pressure are randomly assigned to a placebo
group and a treatment group. The placebo patients receive an inactive pill, and
the treatment patients receive a new drug that is expected to lower blood
pressure. After the patients are treated for two months, the high blood
pressures of the patients of both groups are measured and given as follows:
Placebo
140 165 170 140 135 170 165 150 140
Group (X)
Treatment
130 135 140 130 120 120 132 118 120
Group (Y)

If E ( X ) μ=
= 1, Var ( X ) σ1 and
2
= E ( Y ) μ=
2 , Var ( Y ) σ 2 , then
2

(i) ( )
Show that the statistic X − Y is an unbiased estimator of the parameter
(μ1 − μ2 ) . Also, find the estimate of the same using the given data.
(ii) Calculate the variance and standard deviation of the estimator in Part (i).
Also, find the estimate of standard error.
(iii) Calculate an estimate of the ratio σ1 / σ 2 .

We now end this unit by giving a summary of what we have covered in it.

6.6 SUMMARY
In this unit, we have covered the following points:
• If we estimate an unknown parameter by a single statistic then this
technique is known as point estimation whereas if we determine an
174 interval (using sample values) that contains the true value of the unknown
Unit 6 Unbiasedness

parameter with a certain confidence then it is known as interval

estimation.

• The set of all possible values that the parameter θ or parameters θ1, θ2,
…, θk can assume is called the parameter space. It is denoted by Θ .

• The properties of a good estimator are unbiasedness, consistency,

efficiency and sufficiency.

• An estimator is said to be unbiased if the expected value of the estimator

is equal to the true value of the parameter being estimated.

• The properties of an unbiased estimator.

6.7 TERMINAL QUESTIONS

1. A random sample X1, X2, …, Xn of size n taken from a population whose
pdf is given by
1 − x/θ
f(x,θ)
= e ; x > 0 ,θ > 0
θ

Show that sample mean (X) is an unbiased estimator of parameter θ.

2. Consider a population comprising three LED televisions of a certain

company. If the lives of the LED televisions are 8, 6 and 10 years then
construct the sampling distribution of the average life of the LED
televisions by taking samples of size 2 and show that the sample mean
2
is an unbiased estimator of the population mean life. Also, show that S′
is not an unbiased estimator of population variance whereas S2 is an
unbiased estimator of population variance where
n
1 n
∑( )
1 2
∑( )
2
=S′2 and S2
Xi − X = Xi − X
n i=1
n − 1 i=1

6.8 SOLUTIONS / ANSWERS

Self Assessment Questions (SAQs)
1. Since parameter θ represents the average marks in the paper of the
MST-016 course of 50 marks and there is no negative marking,
therefore, a learner can take a minimum 0 marks and a maximum 50
= {θ : 0 ≤ θ ≤ 50} .
marks. Thus, the parameter space of θ is Θ

2. Refer to Section 6.3.

3(a) We have to check whether estimator T1 and T2 are unbiased or not.
Therefore, we have to find E(T1) and E(T2) and check whether it is equal
to µ or not. Since X1, X2, X3, X4 and X5 are independent and taken from
the same population with a mean μ and variance σ2, therefore,

=E ( Xi ) μ =
and Var ( Xi ) σ=
2
for all i 1,2,...,5

We now consider
 X + X 2 + X3 + X 4 + X5 
E ( T1 ) = E  1 
 5  175
Block 2 Properties of Good Estimator
1
= E ( X1 ) + E ( X2 ) + E ( X3 ) + E ( X4 ) + E ( X5 ) 
5
1
=
5
[μ + μ + μ + μ + μ]

E ( T1 ) = μ

Similarly,

 X + 2X2 + 3X3 + 4X4 + 5X5 

E ( T2 ) = E  1 
 15 
1
= E ( X1 ) + 2E ( X2 ) + 3E ( X3 ) + 4E ( X4 ) + 5E ( X5 ) 
15 
1 1
=
15
[μ + 2μ + 3μ + 4μ + 5μ] = 15 (15μ)

E ( T2 ) = μ

Hence, both estimators T1 and T2 are unbiased estimators of μ.

3(b) Let X and X be the sample mean and sample median respectively.
We have seen in Unit 2 that if we draw samples from the population
whose mean is μ and variance σ2 then the sampling distribution of mean
has mean μ and variance σ2/n.
Therefore,

σ2
( )
E X = μ and Var ( X ) =
n

Hence, the sample mean is an unbiased estimator of the population

mean.
Similarly, the sampling distribution of the median has mean μ and
π σ2
variance . Therefore,
2 n
2
( )  = πσ
 = μ and Var X
E X ( )
2n

Hence, the sample median is also an unbiased estimator of the

population mean.

4. ( )
We have to show that X − Y is an unbiased estimator for (μ1 − μ2 ) ,
therefore, we have to find E ( X − Y ) and check whether it is equal to
(μ1 − μ2 ) or not. Thus, we consider
( ) ( ) ( )
E X − Y =E X − E Y =μ1 − μ2  E ( aX − bY ) =aE ( X ) − bE ( Y ) 

( )
Hence, the estimator X − Y is an unbiased estimator for (μ1 − μ2 ) .

We now find the estimate of the same using the given data. Since
estimate is the value of the estimator, therefore, we find the mean of
176 each group as
Unit 6 Unbiasedness

Placebo Treatment
X2 Y2
Group (X) Group (Y)
140 130 19600 16900
165 135 27225 18225
170 140 28900 19600
140 130 19600 16900
135 120 18225 14400
170 120 28900 14400
165 132 27225 17424
150 118 22500 13924
140 120 19600 14400
1375 1145 211775 146173

n
1 1 1375
=X ∑ =
n1 i=1
Xi = 152.78
9
n
1 2 1145
=Y =
n2 i=1
∑
Yi = 127.22
9

Thus, we find the estimate of the parameter (μ1 − μ2 ) as

X−
= Y 152.78 − 127.22
= 25.56.

We now find the variance and standard deviation of X − Y as ( )

σ12 σ 22
( )
Var X − Y = Var X + Var Y = ( ) ( ) +
n1 n2

And standard deviation

σ12 σ 22
(
SD X − Y = ) (
Var X − Y = ) +
n1 n2

By the definition of standard error, we can find it as

σ12 σ 22
( )
SE X − Y = SD X − Y = ( ) +
n1 n2

We can compute the estimate of standard error as

σˆ 12 σˆ 22 S12 S22
(
SE X − Y = ) +
n1 n2
= +
n1 n2

Therefore, we first calculate S12 and S22 as

n1
1 1  n 
= 2
S1 − X)2
(Xi=
n1 − 1 i 1 =
∑ 
n1 − 1  i 1
∑ Xi2 − nX2 
= 
1
= ( 211775 − 9 × 152.78 × 152.78
= ) 212.43
8
n2 n
1 1  2 2 
=S22 − Y)2
(Yi=
n2 − 1 i 1 =
∑
 Yi − nY 2 
n2 − 1  i 1  ∑ 177
= 
Block 2 Properties of Good Estimator
1
= (146173 − 9 × 127.22 × 127.22
= ) 63.58
8

Finally, we can compute the estimate of the standard error as

S12 S22 212.43 63.58

(
SE X − Y = ) +
n1 n2
=
9
+
9
= 30.67 = 5.54

Note that S2 is an unbiased estimator of σ2 however, S is not an

unbiased estimator of σ. Similarly, S1/S2 is not an unbiased estimator of
σ1/σ2.
An estimate of σ1/σ2 is S1/S2 (this is a biased estimate)

S1 S12 212.43
= = = 1.83
S2 S22 63.58

Terminal Questions (TQs)

1. We have to show that X is an unbiased estimator for θ, therefore, we
have to find E(X) and check whether it is equal to θ or not. Here, we are
given that
1 − x/θ
f(x, θ)
= e ; x > 0 ,θ > 0
θ

It is negative exponential distribution with parameter θ and know the

mean of this distribution as
E ( X) = θ

Since X1, X2,…, Xn are randomly drawn from the same population having
mean θ, therefore,
E ( X1=
) E ( X2 =) ...= E ( Xn =) E ( X=) θ
Therefore, we consider
 X + X2 + ... + Xn 
( )
E X =E 1
 n 

[By defination of sample mean]

1  E ( aX + bY ) 
= E ( X1 ) + E ( X2 ) + ... + E ( Xn )   
n = aE ( X ) + bE ( Y ) 

1 1
= (θ
 θ 
+ + ...=θ) =
+ (nθ ) θ
n n-times
n

Thus, the sample mean is an unbiased estimator of the parameter θ.

2. Here, the population consists of three LED televisions whose lives are 8,
6 and 10 years so we can find the population mean and variance as
8 + 6 + 10
=μ = 8
3
1 8
σ2 = ( 8 − 8 )2 + ( 6 − 8 )2 + (10 − 8 )2  = = 2.67
3  3

178 Here, we are given that

Unit 6 Unbiasedness

N = 3 and n = 2
Therefore, the possible numbers of samples (with replacement) that can
be drawn from this population are Nn = 32 = 9. For each of these 9
samples, we will calculate the values of X,S′2 and S2 by the formulae
given below:

1 n 1 n 1 n
∑( ) ∑( )
2 2
X = Xi , S′2 =
n n
∑Xi − X and S2 =
n − 1
Xi − X
=i 1 =i 1 =i 1

and the necessary calculations for these results are shown in the
following table:
Calculation for X, S′2 and S2
2
∑ ( Xi - X )
2
Sample
Sample
Observations X S′2 S2
i=1

1 8, 8 8 0 0 0
2 8, 6 7 2 1 2
3 8,10 9 2 1 2
4 6, 8 7 2 1 2
5 6, 6 6 0 0 0
6 6, 10 8 8 4 8
7 10, 8 9 2 1 2
8 10, 6 8 8 4 8
9 10, 10 10 0 0 0
Total 72 12 24

We calculate X,S′2 and S2 as

1
X1= ( 8 + 8 )= 8,
2

1
X2 = ( 8 + 6 )= 7,...,
2

1
X9 = (10 + 10 )= 10
2

1 2 2
S1′2=  ( 8 − 8 ) + ( 8 − 8 ) = 0,
2 

1
S′22= 

( 8 − 7 )2 + ( 6 − 7 )2 = 1,...,
2

1 2 2
S′92=  (10 − 10 ) + (10 − 10 ) =
 0
2

1 
S12
= 

( 8 − 8 )2 + ( 8 − 8=
)2  0,
2 −1

1  2 2
S22
=  ( 8 − 7 ) + ( 6 − 7=
)  2,...,
2 −1 179
Block 2 Properties of Good Estimator
1  2 2
S92
=  (10 − 10 ) + (10 − 10=
)  0
2 −1
From the above table, we have
k
1 1
( )
E X =
k
∑ Xi =9 × 72 =8 =μ
i=1

Hence, the sample mean is an unbiased estimator of the population

mean.
Also
k
( ) ∑ S′
E S′2 =
1
k
i
2 1
= × 12 =1.33 ≠ σ 2
9
i=1

2
Therefore, S′ is not an unbiased estimator of σ2 whereas,
k
( ) ∑S
E S2 =
1
k
2
i
1
= × 24 =2.67 =σ 2
9
i=1

Hence, the estimator S2 is an unbiased estimator of parameter σ2.

180