If We Wish to Obtain a 98% Confidence Interval of a Parameter

question 7

Multiple Choice

If we wish to obtain a 98% confidence interval of a parameter using the bootstrap method, which percentiles ofthe resampled distribution will form the lower and upper bounds of the interval?

• A) 1, 99
• B) 2, 98
• C) 2, 99
• D) 1, 98

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Definitions:

Interest-earning Account

A bank account that provides interest payments on the cash deposited into the account.

Annual Rate

The percentage return on an investment or rate of interest per year, not accounting for the compounding of interest within that year.

Annual Withdraw

Annual Withdraw refers to the amount of money that is taken out of an investment or savings account each year.

Rate Of Return

The upturn or downturn in investment value over a pre-defined period, cast as a percentage of the cost at investment inception.