For a Given Confidence Level and When σ Is Known

question 58

Multiple Choice

For a given confidence level and when σ is known, the margin of error in a confidence interval estimate

• A) ​varies from sample to sample of the same size.
• B) ​is the same for all samples of the same size.
• C) ​increases as the sample size increases.
• D) ​is independent of sample size.

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Definitions:

Profitability Index

A measure used in capital budgeting to evaluate the profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window.