As the Size of a Sample ________ ,The Size of the Standard

question 68

Multiple Choice

As the size of a sample ________ ,the size of the standard deviation is most likely to ________ .

• A) increases;increase
• B) increases;decrease
• C) decreases;remain the same
• D) increases or decreases;remain the same

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Definitions:

Growing Annuity

An annuity that increases at a proportionate rate during the period of the contract, typically to combat inflation.

Annuity Growth Rate

The rate at which the value of an annuity investment increases over time.

Compounded Annually

A method of calculating interest in which the interest earned each year is added to the principal, so that the balance doesn't merely grow, it grows at an increasing rate.

Growing Annuity

A series of cash flows that grow at a constant rate for a specific number of periods.