Use the Table for the Question(s)below

question 103

Multiple Choice

Use the table for the question(s) below.
Consider the following realized annual returns:
-Suppose that you want to use the 10-year historical average return on the Index to forecast the expected future return on the Index.The 95% confidence interval for your estimate of the expect return is closest to:

• A)-9.6% to 27.3%.
• B)6.8% to 10.7%.
• C)-3.5% to 21.1%.
• D)4.9% to 12.7%.

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Definitions:

Input

Resources used in the production process to create goods or services, including labor, materials, and capital.

Returns To Scale

An economic concept describing how the increase in inputs affects the level of output of a production process.

Production Function

A mathematical equation that describes the relationship between inputs and the maximum output that can be produced with those inputs.

Inputs

Resources used in the production process, such as labor, capital, materials, and energy.