Other Things Being Equal,an Increase in the Number of Days

question 42

Multiple Choice

Other things being equal,an increase in the number of days that a commercial bank loan is outstanding will mean:

• A) a reduction in the banks risk.
• B) an increase in the administration costs.
• C) an increase in the dollar amount of the interest.
• D) a reduction in the principal amount borrowed.

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Definitions:

Standard Error

The standard deviation of the sampling distribution of a statistic, often used to measure the precision of a sample mean.

Margin of Error

A statistic expressing the amount of random sampling error in a survey's results, indicating a range within which the true population parameter is likely to lie.

Confidence Interval

A set of values obtained from sample data, which is expected to encompass the value of an unspecified population parameter.

Margin of Error

A statistic expressing the amount of random sampling error in a survey's results, representing the range within which the true population parameter is likely to lie with a certain degree of confidence.