2.2.1 Minimum Variance Unbiased Estimator (MVUE)

The MVUE is an optimal estimator. The two attributes of this optimal estimator are:

• It should be unbiased:

  

  where [a,b] is the range of interest of the parameter to be estimated.
  
  This ensures that the estimator produces, in an average sense, the true value of the parameter to be estimated.


• It should have minimum variance:

  

  This ensures that the estimator, in expected sense, deviates from the true value of the parameter minimally among all possible unbiased estimators for the problem.

2.2.2 Example