Practice mode Statistical Inference

If f(x1, x2, …, xn; θ) = g(θ̂; θ) h(x1, x2, …, xn), then θ̂ is?

Correct answer C. Sufficient

Explanation

By the Fisher-Neyman factorisation theorem, a statistic is sufficient when the joint density factorises into a part depending on θ only through it and a part free of θ.

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