What Is the Difference Between a Confidence Interval and a Prediction

question 117

Multiple Choice

What is the difference between a confidence interval and a prediction interval for the dependent variable in correlation analysis?

• A) A prediction interval reports the mean value of Y for a given X, whereas a confidence interval reports the range of values of Y for a particular value of X.
• B) A confidence interval reports the mean value of Y for a given X, whereas a prediction interval reports the range of values of Y for a particular value of X.
• C) A confidence interval reports the value of Y for a given X, whereas a prediction interval reports the value of Y for a particular value of X.

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Definitions:

Rate Of Total Return

A measure of the overall return on an investment, including both capital gains and income, expressed as a percentage of the initial investment.

Income Yield

The return on an investment expressed as a percentage of the investment’s cost.

Total Return

A measure of the overall return on an investment, including both capital appreciation and dividends or interest, over a specific period.

Rate Of Return

The net gain or loss of an investment over a specified time period, expressed as a percentage of the investment's initial cost.