Use the Table for the Question(s)below

question 72

Multiple Choice

Use the table for the question(s) below.
Consider the following probability distribution of returns for Alpha Corporation:
-Which of the following statements is FALSE?

• A)The standard error provides an indication of how far the sample average might deviate from the expected return.
• B)The 95% confidence interval for the expected return is defined as the Historical Average Return plus or minus three standard errors.
• C)We can use a security's historical average return to estimate its actual expected return.
• D)The standard error is the standard deviation of the average return.

---

Definitions:

Weighted Average

This is a calculation method that takes into account the varying degrees of importance of the numbers in a data set, giving different weights to some of the data points.

Moving Average

A calculation used to analyze data points by creating a series of averages of different subsets of the full data set.

Physical Count

The process of counting and verifying actual inventory on hand to ensure accuracy in records and reports.

Inventory Reporting

The process of accounting for inventory levels, costs, and valuation in financial statements.