If the Expected Value of the Sample Statistic Is Equal

question 33

Multiple Choice

If the expected value of the sample statistic is equal to the population parameter being estimated, the sample statistic is said to

• A)have low variability.
• B)be an unbiased estimator of the population parameter.
• C)have high precision.
• D)be a random estimator of the population parameter.

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Definitions:

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets that are financed by shareholders' equity.

Net Profit Margin

A financial metric that measures the percentage of profit generated from revenue after all expenses have been subtracted.

Gross Margin

The difference between revenue and cost of goods sold, which shows the profitability of a company's core activities.

Return On Total Assets

A financial ratio that measures a company's profitability relative to its total assets.