A "What If" Simulation Using a Computer Helps to

question 66

Multiple Choice

A "what if" simulation using a computer helps to

• A) reduce the risk associated with a particular investment.
• B) determine the effects of changes in certain variables.
• C) increase the accuracy of the inputs.
• D) make data entry more complicated.

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Definitions:

Confidence Interval

An extent of values, based on sample statistics, that is likely to capture the essence of an undisclosed population parameter.

Sample

Subset or portion of a population.

Mean

The average value of a data set, obtained by dividing the sum of all the values by the number of values.

Confidence Interval

A span of numerical values, calculated from statistics of a sample, that is expected to encompass the value of a not yet known population parameter with a certain degree of confidence.