Question

5. According to a SAS output, the point estimate of the odds ratio with respect to gender

     and lung cancer is 1. Which of the following statements is true with regards to the true

     odds ratio?

(a) The true odds ratio is 1

       (b) The true odds ratio is close to 1

       (c) The true odds ratio is far from 1

(d) It is hard to say where the true odds ratio is

Answer 1

5. Answer (d) It is hard to say where the true odds ratio is

Explanation: Point estimate of any parameter(not only odds ratio) is calculated based on sampled data where as true parameter is calculated based on whole population data.We can estimate population parameter by sampled data but we can never say whether true value is equal to or close to estimated value. If we check confidence interval then CI gives us interval in which population parameter or true parameter can fall with a certain high probability(0.95 or 0.99 etc ). But we can never surely say that true value is closer to estimated or not.