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Your crude estimator is fine tuned

Posted By: rambiz
Date: Friday, 12 August 2016, at 10:34 a.m.

In Response To: Varianace Reduction for Dummies (Stein Kulseth)

Thank you for comments.

9*0.45-27*0.15=0 !
That's why your example works. Otherwise it would introduce bias.
In David Montgomery's example the luck estimates are not random, either. It is in fact a more sophisticated, contrived case.

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