Which of the Following Statements Applies to a Point Estimate

question 154

Multiple Choice

Which of the following statements applies to a point estimate?

• A) The point estimate is a parameter.
• B) The point estimate will tend to be accurate if the sample size exceeds 30 for non-normal populations.
• C) The point estimate is subject to sampling error and will almost always be different from the population value.
• D) The point estimate is needed to determine the required sample size when estimating the population mean.

Grasp the concept of regulatory capture and the effects of deregulation.

Comprehend the implications of market failure and government intervention.

Recognize the challenges in achieving efficient outcomes through public decision-making processes.

Understand the basic concepts and theories of social psychology.

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Definitions:

Externalities

Costs or benefits that affect parties who did not choose to incur that cost or benefit, often related to environmental, public health, or economic activities.

Net Present Value (NPV)

A calculation used to assess the profitability of an investment, measuring the difference between the present value of its cash inflows and outflows.

Internal Rate of Return (IRR)

The rate of growth a project is expected to generate, calculated as the discount rate that makes the net present value (NPV) of all cash flows equal to zero.

Payback Method

An investment analysis method that calculates the time required to recoup the cost of an investment, based on the cash flow it generates.