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:

Explicit Cost

Direct, out-of-pocket payments for goods or services used in the production of a product or offering of a service.

Sole Proprietor

An individual who owns and operates a business alone, bearing all the responsibilities and benefits of the business.

Short Run

A timeline in economics where at least one factor of production is fixed, constraining the ability to adjust to changing economic conditions.

Long Run

In economics, a period of time in which all factors of production and costs are variable and can be adjusted.