Which term describes the rule that produces an estimate?

Which term describes the rule that produces an estimate?

• A. Variable
• B. Estimator
• C. Statistic
• D. Parameter

Answer: (B)

The rule that produces an estimate is called an estimator. In estimation, you start with a rule or function (the estimator) and apply it to your sample data to generate a numerical value—the estimate. The actual number you obtain from the data is a statistic, while the true quantity you’re trying to infer is the parameter. For example, the sample mean is an estimator of the population mean; applying this rule to your data gives you the estimate, a statistic. The other terms describe different ideas: a variable is a characteristic that can vary, a statistic is the computed value from the data, and a parameter is the true population value you aim to estimate.

The rule that produces an estimate is called an estimator. In estimation, you start with a rule or function (the estimator) and apply it to your sample data to generate a numerical value—the estimate. The actual number you obtain from the data is a statistic, while the true quantity you’re trying to infer is the parameter. For example, the sample mean is an estimator of the population mean; applying this rule to your data gives you the estimate, a statistic. The other terms describe different ideas: a variable is a characteristic that can vary, a statistic is the computed value from the data, and a parameter is the true population value you aim to estimate.