Which of the Following Is a Difference Between Interval Estimates

question 21

Multiple Choice

Which of the following is a difference between interval estimates and point estimates?

• A) Point estimates cannot be used to calculate statistical error, while interval estimate is used to calculate statistical error.
• B) Point estimates provide only a single value for a sample, while interval estimates provide a range of values.
• C) Point estimates indicate the magnitude of potential error in the estimate, while interval estimates don't.
• D) Point estimates on an average provide more information than interval estimates.

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Definitions:

Salvage Value

The assessed salvage value of an asset at the close of its lifespan.

Pretax Return

The income earned by a company before taxes are deducted.

Internal Rate Of Return

The discount rate at which the net present value of an investment project is zero; the rate of return of a project over its useful life.

Cash Inflow

The total amount of money being received by a company, often from its main activities such as sales of goods or services.