Mean or maximum for the endpoint
Ten independent observations are uniform on . Two unbiased estimators of are
Find the ratio .
Fractions, decimals with at least 3 significant digits, and expressions such as sqrt(2)/2, e^-1 or pi/4.
A uniform on has variance .
The maximum of uniforms on has and .
h
s Shown after a correct answer. Revealing it first marks the problem as seen, not solved.
Idea. Both estimators are unbiased, so compare variances. The mean uses all the data but each observation is noisy; the maximum sits close to and its spread shrinks like instead of .
Step 1: the mean.
Step 2: the maximum. , so
Step 3: the ratio.
The lesson. The scaled maximum is four times more precise here, and the advantage grows with . The maximum is a sufficient statistic for : once you know it, the other observations carry no further information about .