The number of runs needed to estimate the expected value of a parameter of interest
A) increases with the variance of the observed variables of interest
B) increases with the confidence level demanded for the expected value
C) Decreases with the variance of the observed variables of interest
D) A and B only

Question

Quizplus · Accepted Answer

The number of runs needed to estimate the expected value of a parameter increases with the variance of the observed variables because higher variance means more uncertainty, requiring more data to achieve a precise estimate. Additionally, as the confidence level demanded for the expected value increases, more runs are needed to ensure that the estimate falls within the tighter confidence interval.

The Number of Runs Needed to Estimate the Expected Value