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:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts, resulting in a consistent expense charge.

Discount Factor

A discount factor is a financial metric used to calculate the present value of future cash flows by taking into account the time value of money.

Capital Budgeting

The method of assessing and choosing long-term investment opportunities that align with the objective of maximizing shareholder wealth.

Straight-Line Depreciation

A way of spreading the financial load of a tangible good across its effective lifespan in consistent yearly portions.