An estimatorfor a population parameteris an unbiased estimator forif
An unbiased estimator is always better than a biased estimator, and an estimator is better in general if the bias is small and/or the variance is small.
For exampleis a biased estimator forbutis an unbiased estimator forThe relationship betweenandisso that The bias ofis then
If we have two estimators for the mean of a population,andwith thenand so bothandare unbiased estimators forbut
The variance ofis less than the variance ofsois a better estimator for