Sufficient Statistic for Normal Mean - Quant Trader Interview Question
Difficulty: Medium
Category: Probability & Statistics
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Topics: sufficient-statistic, normal-distribution, estimation, probability
Problem Description
You are analyzing historical price data for a particular asset. You believe the daily price changes are independently and identically distributed according to a normal distribution with an unknown mean $ \mu $ and a known variance $ \sigma^2 $. Given a sample of $ n $ daily price changes, what is a sufficient statistic for estimating the unknown mean $ \mu $?
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