THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 32

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A Monte Carlo study involves 10,000 random samples of size 20 from a normal population with mean μ = 120 and standard deviation σ = 20.For each sample,the mean and the median are calculated,with the following results:

-What does the study suggest about the bias of the estimators in this situation?

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Definitions:

Sinking Fund

A fund established by an entity by setting aside revenue over time for the purpose of paying off debt or replacing a future expense.

Protective Covenants

Clauses in a contract or bond indenture that restrict the borrower from certain activities, aiming to protect creditors.

Real Rates

Interest rates or rates of return that have been adjusted for inflation, showing the real purchasing power of the amount.

Nominal Rates

Interest rates or rates of return on investment that have not been adjusted for inflation, representing the face value of financial instruments.