Final answer:
The statement is false as the test error is not always an unbiased estimate of the generalization error.
Step-by-step explanation:
The statement is false. The test error is generally not an unbiased estimate of the generalization error. Bias refers to a systematic error that occurs when the sample is not representative of the population. In the case of estimating the generalization error, the test error may be biased due to factors such as the composition of the test set or the selection of the training data. Therefore, the test error may not provide an accurate estimate of the generalization error.