A Confidence Level of 95% Means That

question 16

Multiple Choice

A confidence level of 95% means that:

• A) If the same study were conducted 100 times with random samples drawn from the same population, it would represent the true population value 95 times.
• B) If the same study were conducted 100 times with random samples drawn from the same population, it would not represent the true population value 95 times.
• C) There is a 95% margin of error in terms of the accuracy of the research findings.
• D) If the same study were conducted 100 times with random samples drawn from the same population, it would represent the true population value 5 times.

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Definitions:

Serial Bonds

Bonds that mature in installments at regular intervals over a period of time rather than having a single maturity date.

Debenture Bonds

Unsecured bonds that rely on the creditworthiness and reputation of the issuer for support, rather than collateral.

Convertible Bonds

Bonds eligible for conversion into a specific quantity of a company's stock at various points throughout their tenure, typically at the option of the holder.

GAAP

Generally Accepted Accounting Principles; refers to the framework of guidelines for financial accounting used in any given jurisdiction; commonly serves as the standard for financial reporting.