At a Given Sample Size and Level of Confidence, the Smaller

question 102

True/False

At a given sample size and level of confidence, the smaller the population standard deviation $\sigma$ , the wider and thus the less precise the confidence interval estimate of $\mu$ is.

---

Definitions:

Operating Cash Inflow

Cash received by a company during its normal business operations.

After-Tax Discount Rate

The rate used to discount future cash flows to their present value, taking into account the effects of taxes.

Straight-Line Depreciation

A method of calculating depreciation of an asset by evenly spreading its cost over the expected useful life.

After-Tax Discount Rate

The rate used to discount future cash flows to their present value after accounting for the effects of taxes, reflecting the net cost of capital to the company.