Which of the Following Statements Is True

question 76

Multiple Choice

Which of the following statements is true?

• A)The size of the range over which bucket gaps are calculated does not matter as the repricing gap will always lead to exact results.
• B)The shorter the range over which bucket gaps are calculated, the greater the potential error.
• C)The shorter the range over which bucket gaps are calculated, the smaller the potential error.
• D)None of the listed options are correct.

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Definitions:

Confidence Interval

An interval estimate around a sample mean within which an unknown population mean is expected to lie, at a certain confidence level.

Population Mean

The average of a set of characteristics, quantities, or values for all individuals or items in a defined population.

Population Variance

A measure of how data points in a population are spread out from the mean.

T Distribution

A type of probability distribution that is symmetrical and bell-shaped like the normal distribution but has heavier tails, used especially for small sample sizes.