The Sample Proportion Is a Consistent Estimator of the Population

question 34

True/False

The sample proportion is a consistent estimator of the population proportion p because it is unbiased and the variance of is p(1 − p)/ n,which grows smaller as n grows larger.

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Definitions:

Tax Rate

A percentage at which an individual or corporation is taxed.

Residual Value

The estimated value of an asset at the end of its useful life, important in calculating depreciation and lease contracts.

Lessor's Tax Rate

The tax rate applicable to a lessor, the entity that leases out a property or asset, on the income generated from the lease.

Borrowing Increases

The act of increasing the amount of money borrowed, which typically leads to higher debt levels and potentially increased interest expenses.