Which of the Following Is True for 95% Confidence Bands

question 27

Multiple Choice

Which of the following is true for 95% confidence bands?

• A) 95% of the population data will be bracketed by the 95% confidence bands.
• B) 95% of the sample data will be bracketed by the 95% confidence bands.
• C) The 95% confidence bands from 95% of samples will bracket the true population regression line.
• D) There is a 95% chance that the sample regression will match the true population regression line.

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Definitions:

Equipment

Physical assets used in the operation of a business, particularly in the production, maintenance, or logistics processes.

Profitability Index

A financial metric used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment.

Present Value

A calculation that determines the current value of a future amount of money or stream of cash flows given a specified rate of return.

Cash Inflows

Money received by a business from its operational activities, investments, or financing.