The Sample Variance S² Is an Unbiased Estimator of the Population

question 64

Multiple Choice

The sample variance s² is an unbiased estimator of the population variance σ² when the denominator of s² is

• A)n + 1
• B)n
• C)n − 1

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Definitions:

Retention Ratio

The percentage of net income that is retained by a company rather than distributed to its shareholders as dividends.

Quarterly Earnings

A corporation's earnings reported on a quarterly basis, giving investors and analysts an interim view of financial performance and profitability.

Stock Split

A company strategy to divide its existing shares into a larger number of shares to enhance the liquidity of the shares.

Market Price

The now prevailing cost at which one can buy or sell an asset or service.