CFA Level I · CFA Level I Exam · Estimation and Hypothesis Testing
Compared with the bootstrap, the jackknife is most accurately described as:
The jackknife is deterministic because it systematically omits one observation at a time, so the same data always give identical results. The bootstrap is random, sampling with replacement, and requires the analyst to choose the number of replications, so its results vary slightly.
- Arandom, because it samples with replacement
- Bdeterministic, because it systematically omits one observation at a timeCorrect
- Cdependent on the analyst choosing a large number of replications
Explanation
The jackknife leaves out each observation in turn, so the same data always give the same result. The bootstrap uses random sampling with replacement and requires a chosen number of replications, which makes its results vary slightly between runs.
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