Which One of the Following Is a True Statement Regarding

question 75

Multiple Choice

Which one of the following is a true statement regarding the Dow Jones Industrial Average?

• A) It is a value-weighted average of 30 large industrial stocks.
• B) It is a price-weighted average of 30 large industrial stocks.
• C) It is a price-weighted average of 100 large stocks traded on the New York Stock Exchange.
• D) It is a value-weighted average of all stocks traded on the New York Stock Exchange.

---

Definitions:

Denominator

The bottom number in a fraction, representing the total number of equal parts the whole is divided into.

Interval Estimate

A range of values, calculated from sample data, that is likely to include the true value of a population parameter.

Sample Statistic

A numerical measurement describing some characteristic of a sample, such as the mean or variance.

Sample Mean

The mean of a collection of numbers, determined by summing all the numbers in the set and then dividing by the count of the numbers.