6 In a certain city there are \(N\) taxis. Each taxi displays a different licensing number which is an integer in the range 1 to \(N\). A visitor to the city attempts to estimate the value of \(N\), assuming that the licensing number of each taxi observed is equally likely to be any integer from 1 to \(N\) inclusive.
- The visitor observes one randomly chosen licensing number, \(X\). Using standard results for \(\sum _ { r = 1 } ^ { n } r\) and \(\sum _ { r = 1 } ^ { n } r ^ { 2 }\), show that \(\mathrm { E } ( X ) = \frac { 1 } { 2 } ( N + 1 )\) and \(\operatorname { Var } ( X ) = \frac { 1 } { 12 } \left( N ^ { 2 } - 1 \right)\).
The mean of 40 independent observations of \(X\) is denoted by \(A\).
- Find an unbiased estimator \(E _ { 1 }\) of \(N\) based on \(A\), and state the approximate distribution of \(E _ { 1 }\), giving the value(s) of any parameter(s).
\(B\) is another random variable based on a random sample of 40 independent observations of \(X\). It is given that \(\mathrm { E } ( B ) = \frac { 40 } { 27 } N\) and that \(\operatorname { Var } ( B ) = \alpha N ^ { 2 }\) where \(\alpha\) is a constant.
- Find an unbiased estimator \(E _ { 2 }\) of \(N\) based on \(B\), and determine the set of values of \(\alpha\) for which \(\operatorname { Var } \left( E _ { 2 } \right) > \operatorname { Var } \left( E _ { 1 } \right)\) for all values of \(N\).