When Using Inferential Statistics to Estimate the Population Variance, You

question 60

Multiple Choice

When using inferential statistics to estimate the population variance, you divide the sum of the squares by:

• A) N
• B) N+1
• C) square root of N
• D) N-1

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Definitions:

Inflation Premium

The additional amount investors require on the return of an investment to compensate for the loss of purchasing power due to inflation.

Treasury Bill

Short-term government securities issued at a discount from the face value and maturing at par.

Yield Curve

A line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates.

Normal Yield Curve

A graphical representation that shows interest rates on bonds of different maturities tend to increase the longer the term to maturity, under normal market conditions.