For a Given Sample Size and Population Standard Deviation, Which

question 40

Multiple Choice

For a given sample size and population standard deviation, which of the following is true in the interval estimation of the population mean?

• A) If the confidence level is greater, the interval is wider.
• B) If the confidence level is smaller, the interval is wider.
• C) If the confidence level is greater, the interval is narrower.
• D) None of the above

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Definitions:

Forward Interest Rate

Rate of interest for a future period that would equate the total return of a long-term bond with that of a strategy of rolling over shorter-term bonds.

Yield Curve

A graph that plots the interest rates at a set point in time of bonds having equal credit quality but differing maturity dates, typically used to predict economic changes.

Maturity

The fixed date in the future at which the principal amount of a bond or other financial instrument is scheduled to be repaid.

STRIPPED Cash Flows

Cash flows from an investment that have had certain elements removed, often related to interest or taxes, to reflect the underlying performance more accurately.