In the Formula for Finding a Confidence Interval When the Value

question 41

Multiple Choice

In the formula for finding a confidence interval when the value of the population standard deviation is unknown,we change N to N - 1.The reason for this change is

• A)to correct for the fact that s is biased.
• B)the standard deviation of a sample is always greater than the standard deviation of the population.
• C)the standard deviation of a sample is unbiased.
• D)sample size is much too large.

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Definitions:

Bernoulli's Theorem

A principle in probability that describes the behavior of binomial distributions under certain conditions.

Utility Theory

A framework in economics and finance that analyzes choices under uncertainty, emphasizing the satisfaction or utility derived from each possible outcome.

Central Limit Theorem

A statistical theory stating that the sampling distribution of the sample mean approaches a normal distribution as the sample size becomes large, regardless of the shape of the population distribution.

Expected Opportunity Loss

The expected loss resulting from not choosing the best alternative action.