Which of the Following Is True of Prediction Intervals

question 33

Multiple Choice

Which of the following is true of prediction intervals?

• A) It provides estimates for variables that can have only two possible outcomes.
• B) It is associated with the distribution of a random variable.
• C) It provides an interval estimate of a population parameter.
• D) It is associated with the sampling distribution of a statistic.

---

Definitions:

Equity Method

An accounting technique used to assess the profits earned by investments in other companies, where the investment income is proportional to the ownership stake.

Common Stock

A type of equity security that represents ownership in a corporation, with holders entitled to vote on corporate matters and receive dividends.

Noncontrolling Interest

The equity in a subsidiary not attributable, directly or indirectly, to a parent company.

Equity Method

The Equity Method is an accounting technique used by firms to assess the profits earned through their investments in other companies, recording these profits as income from the investment.