A 99% Confidence Interval Estimate Can Be Interpreted to Mean

question 114

Multiple Choice

A 99% confidence interval estimate can be interpreted to mean that

• A)if all possible samples of size n are taken and confidence interval estimates are developed,99% of them would include the true population mean somewhere within their interval.
• B)we have 99% confidence that we have selected a sample whose interval does include the population mean.
• C)Both above.
• D)None of the above.

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Definitions:

Annual Dividends

The total amount of dividend payments a company pays out to its shareholders in one year.

Desired Rate of Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account the asset's risk level.

Share

A unit of ownership in a company that entitles the holder to a proportion of the corporation's assets and profits.

Dividend Growth

Dividend growth is the rate at which a company's dividend payments to shareholders increase over time, indicative of the company's financial health and profit distribution policy.