In Trying to Estimate the Variability in the Population in Order

question 63

Multiple Choice

In trying to estimate the variability in the population in order to determine pq,which of the following represents viable alternatives?

• A)Use a random number generator to provide two random values for p and q.
• B)Use the most conservative approach,p = 10,q = 90.
• C)Use 90/10 or find a former study and calculate the variance or conduct a pilot study.
• D)Use 1/5 or find a former study and calculate the variance or conduct a pilot study.
• E)Use 50/50 or find a former study and calculate the variance or conduct a pilot study.

---

Definitions:

Effective Interest Rate

The actual return on investment or cost of a loan, taking into account the compounding of interest, as opposed to the nominal rate.

Stated Interest Rate

The annual interest rate declared on a loan or investment, not taking into account compounding or fees.

Premium Amortized

The process of gradually writing off the initial cost of a premium over the period of the bond to match it with the interest earned.

Interest Cost

The cost incurred by an entity for borrowing funds, essentially the price paid for the use of borrowed money.