The Mean of the Sampling Distribution of the Sample Mean

question 11

Multiple Choice

The mean of the sampling distribution of the sample mean is the mean of:

• A)the means of all possible samples of the same size taken from the population
• B)the frequency distribution of the population
• C)the means of all frequency distributions
• D)one sample

---

Definitions:

Contract Rate

The agreed-upon rate for financial transactions or payments defined in a contractual agreement.

Effective Interest Method

A method of computing the amortized cost of a bond and the interest expense over its life by applying a constant interest rate.

Bond Discounts

The variance between a bond's stated value and the amount it fetches on the market when it ends up selling for beneath that stated value.

Bond Premiums

The amount by which the market price of a bond exceeds its face value, typically due to interest rates being lower than the bond's coupon rate.