PE 4.2

[discjockieravi]

This question asks for the mean square error of two random variables.

estimator: Pareto alpha= 6 theta = 6000

true distribution: Pareto alpha= 3 theta = 2000

The published solution uses the MSE set equal to the Varance + the biased squared. (answer is 9 million)

I tried doing this by expanding the MSE and then plugging in the various pieces but did not get the same answer. (I get 12 million) Any particular reason why?

Thanks!

[colby2152]

I don't understand how the answer of 9m is even obtained. I don't know what practice exam question you are referring to as my 9th edition ASM doesn't have this as its question.

[discjockieravi]

I am using the second printing of the eight edition.

Any one else see this problem?

Thanks!