The relative efficiency is a way to compare the variances of two unbiased estimators. Suppose we have two estimators, ̂ θ1 and ̂ θ2, which are both unbiased for estimating θ. The efficiency of ̂ θ1 relative to ̂ θ2 is: Efficiency(̂ θ1, ̂ θ2) = Variance(̂ θ2) Variance(̂ θ1) (a) Why do you think both estimators must be unbiased? (b) Suppose that X1, . . . , Xn are a random sample from the distribution with pdf f (x|θ) = e−(x−θ) for x > θ. i. Find an estimator ̂ θ1 for θ using the method of moments. Is ̂ θ1 unbiased? ii. Find an estimator ̂ θ2 for θ using the method of maximum likelihood. Is ̂ θ2 unbiased? iii. Adjust ̂ θ1 and ̂ θ2 so that they are unbiased. Find the efficiency of the adjusted ̂ θ1 relative to the adjusted ̂ θ2. What do you conclude?