Statistical Methods Vary in Their Sensitivity to Violations of Their

question 33

Multiple Choice

Statistical methods vary in their sensitivity to violations of their assumptions. The methods that are less prone to error when the assumptions are violated are termed which of the following?

• A) Reliable
• B) Repeatable
• C) Resistant
• D) Robust

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Definitions:

Zero Coupon Bonds

Bonds issued at a discount from their face value, which do not pay periodic interest but are redeemed at full face value at maturity.

Effective Interest Rate

The real rate of interest taking into account the effects of compounding over a given period.

Discount

A reduction from the full amount or value of a product or service, usually to entice customers or accelerate sales.