Which of the Following Statements Is Correct

question 28

Multiple Choice

Which of the following statements is correct?

• A) The distribution of the values in a sample is called a sampling distribution.
• B) The variability of sample means is never smaller than that of the population being sampled.
• C) The larger the sample size is, the larger is the standard error of the mean.
• D) The distribution of the values of a statistic over all possible samples of fixed size is called a sampling distribution.

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Definitions:

Idle Capacity

Unused or underutilized resources within a business, often indicating inefficiency, where machinery, space, or labor is not being employed to full capacity.

Variable Overhead Cost

Costs that vary with the level of production output, such as supplies and utilities for manufacture.

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of goods sold, excluding fixed overhead costs.

Absorption Costing

A cost accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a finished product.