Which of the Following Statements Is True About Prediction Intervals

question 42

Multiple Choice

Which of the following statements is true about prediction intervals?

• A)The width of the prediction interval is affected by the size of the standard deviation of the population distribution.
• B)A prediction interval is concerned with predicting values for individuals.
• C)Prediction intervals are wider than confidence intervals because there is more uncertainty in predicting an individual's value.
• D)All of these statements are true.

---

Definitions:

Forming Department

A division or section within a manufacturing plant where a specific, dedicated portion of the production process occurs, focusing on shaping or forming materials into parts or products.

Assembly Department

A sector within a manufacturing facility where individual components are assembled into final products.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or job orders, calculated before the start of a period based on estimated costs and activity levels.

Direct Labor-Hours

The total hours worked by employees that are directly involved in the production process, used as a basis for allocating labor costs to products.