Two Researchers Run Identical Experiments Except Researcher a Collects Twice

question 14

Multiple Choice

Two researchers run identical experiments except researcher A collects twice as many points as researcher B. For a specific value x, researcher A estimates a y value of and researcher B estimates a y value of . We would expect that researcher A's 95% prediction interval around to be, in general,

• A) wider than researcher B's 95% prediction interval around .
• B) narrower than researcher B's 95% prediction interval around .
• C) the same as researcher B's 95% prediction interval around .
• D) wider than researcher B's 95% prediction interval around or narrower than researcher B's 95% prediction interval around , with equal probability.

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Definitions:

Debt Securities

represent money that is borrowed and must be repaid, with terms that define the amount borrowed, interest rate, and maturity date, commonly issued in the form of bonds, notes, or bills.

Bonds

Debt securities issued by corporations or governments to raise funds, whereby the issuer owes the holders a debt and is obliged to pay interest.

De Jure Corporation

A corporation that is fully in compliance with all state laws and therefore officially recognized as a legal entity.

De Facto Corporation

A company that operates as if it were legally incorporated, despite not having completed the necessary incorporation processes, and may thus be treated as a corporation in many contexts.