The Standard Error of a Statistic Used as an Estimator

question 70

Multiple Choice

The standard error of a statistic used as an estimator of a population parameter is:

• A) the standard deviation of the sampling distribution of the statistic
• B) the variance of the sampling distribution of the statistic
• C) the same value as the population standard deviation
• D) the same value of the population variance
• E) the same value of the population mean

---

Definitions:

Marginal Propensity

The portion of additional income that an individual spends on consuming goods and services, as opposed to saving.

Multiplier

An economic factor that quantifies the impact of a change in investment, government spending, or other economic variables on the overall economy, often leading to a multiple increase in income or output.

Liquidity Preference Theory

A theory suggesting that people prefer to hold their wealth in liquid form for ease of transactions and as a precaution against uncertainty, influencing interest rates.

Demand for Money

The need or desire to hold money as opposed to investing or spending it, influenced by factors such as interest rates and economic stability.