A Confidence Interval Is Defined As

question 103

Multiple Choice

A confidence interval is defined as:

• A) a point estimate plus or minus a specific level of confidence.
• B) a lower and upper confidence limit associated with a specific level of confidence.
• C) an interval that has a 95% probability of containing the population parameter.
• D) a lower and upper confidence limit that has a 95% probability of containing the population parameter.
• E) the difference between the observed sample statistic and the actual value of the population parameter being estimated.

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Definitions:

Revaluation Surplus

The increase in value of an asset, over its previously recorded cost, reflected in the financial statements.

Share Premium

The amount received by a company over and above the face value of its shares when issuing them.

Prior Period Adjustments

Adjustments made to the financial statements to correct errors or account for omitted transactions from a previous period, not part of current period earnings.

Retained Earnings

The part of net profits not distributed as dividends, instead kept by the company for reinvestment in its main operations or for debt repayment.