Which of the Following Statements Is Most Nearly Correct, Other

question 32

Multiple Choice

Which of the following statements is most nearly correct, other things being equal?

• A)Using Student's t instead of z makes a confidence interval narrower.
• B)The table values of z and t are about the same when the mean is large.
• C)For a given confidence level, the z value is always smaller than the t value.
• D)Student's t is rarely used, because it is more conservative to use z.

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Definitions:

Actuarial Information

Data and analysis used to evaluate the financial implications of risk and uncertainty, often used in insurance and pensions.

Market Rate

The dominant interest rate in the market for investments with comparable risk and duration.

Obligation

A duty or commitment to pay money or perform some action in the future, often legally enforceable.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.