A Number Added to and Subtracted from a Point Estimate

question 46

Multiple Choice

A number added to and subtracted from a point estimate to create an approximate 95% confidence interval is known as

• A) cluster of points.
• B) bound on sampling error.
• C) area point estimation.
• D) systematic sampling error.

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Definitions:

Today's Dollars

An amount of money adjusted for inflation to reflect current purchasing power, often used to compare money values at different times.

Investment

The allocation of resources, such as capital or time, in anticipation of generating income or profit.

Modified Duration

A measure of the sensitivity of a bond's price to a change in interest rates, adjusting for the fact that the bond's cash flows change as yields change.

Maturity

The specific day when the core sum of a financial product, like a bond or loan, must be paid back to the investor.