Reading and Comprehension Questions for Chapter 7 1. A statistic is a function of the observations in a random sample. True False True 2. The probability distribution of a statistic is called a sampling distribution. True False True 3. All of the observations in a random sample are independent. True False True 4. The sampling distribution of the sample mean is the t distribution. True False False – the sampling distribution of the sample mean is the normal distribution. 5. The central limit theorem states that the distribution of the sum of independent random variables is the normal distribution. True False True 6. The variance of the difference between two independent random variables is the difference in the variances of the two individual random variables. True False False – the variance of the difference between two independent random variables is the sum of the variances of the two individual random variables. 7. A point estimator of an unknown parameter is unbiased if the expected value of the estimator equals the parameter. True False True 8. The sample mean and sample variance are unbiased estimators of the corresponding population parameters. True False True 9. The sample standard deviation is an unbiased estimator of the population standard deviation. True False False 10. The standard error of a point estimator is a measure of the accuracy of the estimator. True False False – the standard error is a measure of precision of estimation. 11. The mean square error of a point estimator includes a variance component and a bias component. True False True 12. The sample mean is a moment estimator of the population mean. True False True 13. The sample mean is the maximum likelihood estimator of the mean in the normal distribution. True False True 14. The method of maximum likelihood always results in unbiased estimators. True False False 15. The method of maximum likelihood is usually the preferred method for finding point estimators because it produces estimators that have good statistical properties. True False True 16. The Bayesian approach to finding a point estimator of an unknown parameter involves treating the unknown parameter as a random variable. True False True