The Precision with Which a Sample Average Approximates a Population

question 10

Multiple Choice

The precision with which a sample average approximates a population average increases as

• A) the standard deviation of the sample increases.
• B) the standard deviation of the sample decreases.
• C) the mean of the sample increases.
• D) the mean of the sample decreases.

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Definitions:

Account

A record or statement of financial expenditure and receipts relating to a specific period or purpose; also used to refer to a customer's relationship with a financial institution.

Simple Interest

Interest computed solely on the initial amount invested, excluding any previously earned interest.

Investment

The undertaking of investing resources, usually capital, with the foresight of amassing income or profits.

Months

Units of time, typically used to measure periods within a year, consisting of 28 to 31 days.