The Use of the Finite Population Correction Factor When Sampling

question 10

Multiple Choice

The use of the finite population correction factor when sampling without replacement from finite populations will

• A)increase the standard error of the mean.
• B)not affect the standard error of the mean.
• C)reduce the standard error of the mean.
• D)only affect the proportion,not the mean.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, considering both interest payments and the principal appreciation or depreciation.

Par Value

The face value of a bond or stock, as stated by the issuing company. This is the nominal value and may differ from the market value.

Coupon Bond

A bond that pays the holder a fixed interest rate (coupon) over the bond's lifetime and repays the principal at maturity.

Current Yield

A measure of the annual income (interest or dividends) generated by an investment, expressed as a percentage of the current market price.