A 99% Confidence Interval Estimate Can Be Interpreted to Mean

question 191

Multiple Choice

A 99% confidence interval estimate can be interpreted to mean that

• A) if all possible samples of size n are taken and confidence interval estimates are developed, 99% of them would include the true population mean somewhere within their interval.
• B) we have 99% confidence that we have selected a sample whose interval does include the population mean.
• C) Both of the above.
• D) None of the above.

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Definitions:

ROE

Return on Equity is an indicator of a company's financial performance, illustrating the amount of profit generated per dollar of shareholders' investment.

Expected Earnings

The projected profits or income of a company, often used in assessing its stock price.

Earnings Retention Ratio

The portion of a company's profits that is reinvested in the business rather than distributed to shareholders as dividends.

Market Capitalization Rate

The expected return on an investment in the market, derived from the collective appraisal of all investors' expectations of future market performance.