Which of the Following Statements About the Margin of Error

question 28

Multiple Choice

Which of the following statements about the margin of error is false?

• A) Statisticians routinely construct interval estimates by making their point estimate the interval center and creating a range of other possible values, known as the margin of error, below and above the center.
• B) The margin of error is a half-width of an interval estimate, equal to the difference between the point estimate on the one hand and either the lower or upper limit of the interval on the other hand.
• C) The unknown parameter is presumed to lie at the center of the interval that point estimate and margin of error create.
• D) The margin of error only takes sampling error into account, ignoring all other potential sources of error, such as bias in questions, selection bias, or miscalculations.
• E) None of these.

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Definitions:

Allowance for Doubtful Accounts

A reserve account used to estimate the amount of receivables that may not be collectible.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Allowance for Doubtful Accounts

A contra-asset account that represents the amount of accounts receivable a company does not expect to collect.

Accounts Receivable

The money owed to a business by its customers for goods or services that have been delivered or sold but not yet paid for.