What Happens to the Mean and Standard Deviation of the Distribution

question 103

Multiple Choice

What happens to the mean and standard deviation of the distribution of sample means as the size of the sample decreases?

• A)The mean of the sample means stays constant and the standard error increases.
• B)The mean of the sample means stays constant and the standard error decreases.
• C)The mean of the sample means decreases and the standard error increases.
• D)The mean of the sample means increases and the standard error stays constant.

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Definitions:

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Financial Statements

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Benjamin Graham

A renowned economist and professional investor, regarded as the father of value investing.

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The use of borrowed money to increase the potential return of an investment, amplifying both potential gains and losses.