Nneetquant

Precision of the sample mean

EasyRandom VariablesStatistics~3m

A population has variance σ2=10\sigma^2 = 10. You average n=5n = 5 independent samples. What is the variance of the sample mean?

Show hints (2)+
  1. Variance scales by 1/n^2 for a sum, but the sum has n terms.
  2. Answer is sigma^2 / n.

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Asked at: Citadel, Two Sigma

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