How Does an Interval Estimator Differ from a Point Estimator

question 22

Multiple Choice

How does an interval estimator differ from a point estimator?

• A)A point estimator may produce very biased results,while an interval estimator never has such a feature.
• B)If a point estimator fails to produce an unbiased result,then an interval estimator secures such a result.
• C)An interval estimator provides a range of values that always include the estimated population parameter.
• D)An interval estimator provides a range of values for the estimated population parameter rather than a single value provided by a point estimator.

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Definitions:

Entity Concept

An accounting principle that treats a business as a separate entity from its owners for financial reporting purposes.

NCI

Non-Controlling Interest, which refers to the ownership in a subsidiary not held by the parent company, represented in the equity section of the consolidated financial statements.

Liability

A financial obligation or debt owed by an individual or entity to another party that has to be paid back in the future.

Partly Owned Subsidiaries

Subsidiaries that are not wholly owned by the parent company, implying the existence of minority or non-controlling interests.