What Is a Confidence Interval of a Point Estimate

question 17

Multiple Choice

What is a confidence interval of a point estimate?

• A) the likelihood that the true parameter falls within a range of values
• B) the values that the true parameter is likely to exceed, at a given level
• C) a numeric range within which the true parameter falls, at a given confidence level
• D) a percentage range of the likelihood that the sample and true mean are equal

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Definitions:

Profit-Maximizing

The process or strategy undertaken by a company to increase its profits to the highest possible level.

Loss-Minimizing

A strategy employed by businesses to reduce financial losses under unfavorable market conditions, often by cutting costs or restructuring operations.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced, giving a per-unit cost of production.

Profit-Maximizing

A strategy or point at which a business achieves its highest possible profit, with an optimal level of output and pricing.