The Sampling Distribution of the Mean and the Sampling Distribution

question 58

Multiple Choice

The sampling distribution of the mean and the sampling distribution of the variance (when dividing SS by n - 1)

• A)are both unbiased estimators
• B)both follow the central limit theorem
• C)are both associated with minimal variance
• D)all of the above

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Definitions:

Index Funds

Mutual funds or exchange-traded funds (ETFs) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments.

Managed Mutual Funds

Programs invested in by shareholders that operate with a mix of different investments, all overseen by experienced investment professionals.

Rate of Return

The increase or decrease in the value of an investment during a particular time frame, presented as a percentage of the investment’s original price.

Private Saving

The portion of individuals' or households' income that is not used for consumption or paying taxes, typically used for investment or future spending.