Choose the Statement That Best Describes What Is Meant When

question 21

Multiple Choice

Choose the statement that best describes what is meant when we say that the sample mean is unbiased when estimating the population mean.

• A)The standard deviation of the sampling distribution (also called the standard error)and the population standard deviation are equal.
• B)On average, the sample mean is the same as the population mean.
• C)The sample mean will always equal the population mean.
• D)None of these.

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Definitions:

High P/E

A stock with a high price-to-earnings ratio, often indicating expectations of future growth or overvaluation.

Dividend Yields

An economic indicator demonstrating the yearly dividend distribution of a firm in comparison to its share price.

Submartingale

A stochastic process in which the conditional expected value of a future observation, given the past, is at least as great as the present observation, often applied in financial modeling.

Nonrandom Walk

A theory suggesting that stock market prices do not follow a random path but are influenced by past movements and can thus be predicted to some extent.