A 99% Confidence Interval Estimate of the Population Mean $\mu$ Can Be Interpreted to Mean:
A) If All Possible Sample

question 125

Multiple Choice

A 99% confidence interval estimate of the population mean $\mu$ can be interpreted to mean:

• A) if all possible sample are taken and confidence intervals created,99% of them would include the true population mean somewhere within their interval.
• B) we have 99% confidence that we have selected a sample whose interval does include the population mean.
• C) we estimate that the population mean falls between the lower and upper confidence limits,and this type of estimator is correct 99% of the time.
• D) All of these choices are true.

---

Definitions:

Average Excess Returns

The average return on an investment above the return of a benchmark or risk-free asset.

Quasilinear

Pertaining to equations or functions that are nearly, but not exactly, linear in their behavior or representation.

Betas

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates greater volatility than the overall market.

Multifactor Model

Model of security returns positing that returns respond to several systematic risk factors as well as firm-specific influences.