Method of moments

Discussion in 'CT3' started by padasala, Jan 9, 2014.

  1. padasala

    padasala Ton up Member

    Hi,

    When calculating method of moments, the IAI manual divides the var(X) by a factor of n.

    With regards to this, wont using 1/(n-1) be better as that is an unbiased estimator of variance?
     
  2. Calum

    Calum Member

    Strictly, dividing by n is correct if you have the whole population, and n-1 if you are working with a sample.

    In practice, the uncertainty in the estimate dominates the difference that is due to n or n-1.
     

Share This Page