Which of the Following Is True About Using a Mean

question 15

Multiple Choice

Which of the following is true about using a mean drawn from a simple random sample to estimate a population mean?

• A) The size of the sample has a bigger influence than the size of the population on how accurately the sample describes the population.
• B) The size of the population has a bigger influence than the size of the sample on how accurately the sample describes the population.
• C) The results will usually be accurate if the population is large.
• D) The results will usually be accurate even if the population is small.

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Definitions:

Capital-Budgeting

The process by which investors or managers evaluate and select long-term investments based on their potential to generate net revenues.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government bonds.

Risk-Free Rate

The theoretical return on an investment with zero risk, typically represented by the yield on government securities.

Expected Rate

The rate of return that an investor anticipates earning on an investment without taking into account inflation or other factors that could affect the actual yield.