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True or False: an Investment Consultant Is Recommending a Certain

question 66

True/False

True or False: An investment consultant is recommending a certain class of mutual funds to the
clienteles based on its exceptionally high probability of gain.It is an ethical practice to explain to
the clienteles what the meaning of probability is.


Definitions:

Sampling Distribution

The configuration of probability for a given statistic, determined by a random sample.

Sample Mean

The average value calculated from a set of samples or observations drawn from a larger population.

Population Mean

The population mean is the average value of a population attribute, computed by summing all the values in the population and dividing by the total number of values.

Sample Proportion

The ratio of members in a sample that have a particular characteristic to the total number of members in the sample.

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