Multiplicative error models should become more and more important in geodesy, since modern measurement technology on the basis of electromagnetic wave has clearly demonstrated that measurements of this type contain two types of random errors: fixed random errors and baseline-length dependent random errors. Although a number of the estimators of the variance of unit weight are derived from the least-squares-based adjustment methods for multiplicative error models recently, we know very little about their statistical performances. We first derive the variances of the estimates of the variance of unit weight in multiplicative error models. We find that the second order term of random errors will not affect the unbiasedness of an estimate of the variance of unit weight, if such a term is generated from the nonlinearity of models and/or least-squares-based nonlinear objective functions. The result is surprising, since the second order term of random errors has been well known to create the biases in both the estimate of parameters and the measurement corrections in the literature of nonlinear adjustment and nonlinear regression. Simulations are carried out to confirm the statistical analysis and to numerically compare the performances of different estimates of the variance of unit weight in multiplicative error models. From the simulation results, we recommend the estimate of the variance of unit weight with the bias-corrected weighted LS solution, followed by the two estimates with the ordinary LS solutions and the first estimate with the weighted LS solution.