The Reason Sample Variance Has a Divisor of N −

question 40

True/False

The reason sample variance has a divisor of n − 1 rather than n is that it makes the variance an unbiased estimate of the population variance.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, taking into account its current market price, par value, coupon interest rate, and time to maturity.

6 ¾% Bond

A bond that pays an annual interest rate of 6.75% to its holder, typically issued by governments or corporations.

Yield To Maturity

Yield to maturity is the total return anticipated on a bond if the bond is held until it matures, considering all interest payments and the principal repayment.

8% Bond

A bond that pays an annual interest rate of 8% to its holders.