BCG Interview Question | Unbiasedness
Question
What is unbiasedness as a property of an estimator? Is this always a desirable property when performing inference?
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Statistics
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Answers ( 2 )
The unbiasedness property of the estimators means that, if we have many samples for the random variable and we calculate the estimated value corresponding to each sample, the average of these estimated values approaches the unknown parameter.
An unbiased estimator is an accurate statistic that’s used to approximate a population parameter. “Accurate” in this sense means that it’s neither an overestimate nor an underestimate. If an overestimate or underestimate does happen, the mean of the difference is called a “bias.”
Estimator being unbiased means whatever we are estimating from the sample lies very close
to the actual population.
Yes, this is a desirable property as it gives us a clear indication of our sample being representative
of the actual population.