In statistics, an efficient estimator is an estimator that estimates the quantity of interest in some “best possible” manner. The notion of “best possible” relies upon the choice of a particular loss function — the function which quantifies the relative degree of undesirability of estimation errors of different magnitudes. The most common choice of the loss function is quadratic, resulting in the mean squared error criterion of optimality.
Read more about Efficient Estimator: Finite-sample Efficiency, Relative Efficiency, Asymptotic Efficiency
Famous quotes containing the word efficient:
“The really efficient laborer will be found not to crowd his day with work, but will saunter to his task surrounded by a wide halo of ease and leisure.”
—Henry David Thoreau (1817–1862)