Question

TRUE or FALSE and Explain why:

?0 and ?1 are parameters but ?0̂ and ?1̂ are random variables.

Answer 1

TRUE

In probability and statistics, a random variable, random quantity, aleatory variable, or stochastic variable is a variable whose possible values are outcomes of a random phenomenon. A random variable's possible values might represent the possible outcomes of a yet-to-be-performed experiment, or the possible outcomes of a past experiment whose already-existing value is uncertain.

we know that ?0̂ and ?1̂ are the estimated values for the parameter ?0 and ?1. thus the estimated values will be random variables because there values depends on the sample we choose, we need to estimate these random variables so that we can predict the exactvalues of the parameters. it is very difficult to estimate the exact value of the parameters ?0 and ?1 from the sample but whatever weestiamte is ?0̂ and ?1̂ which are random variables.