A Useful Rule of Thumb Is That Standard Errors Are

question 5

Multiple Choice

A useful rule of thumb is that standard errors are expected to shrink at a rate that is the inverse of the:

• A)square root of the sample size.
• B)product of the sample size and the number of parameters in the model.
• C)square of the sample size.
• D)sum of the sample size and the number of parameters in the model.

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Definitions:

Credit Side

The credit side of an account in double-entry bookkeeping is where decreases in assets or expenses or increases in liabilities, equity, and income are recorded.

Debit Side

The left side of an account or transaction, used to record increases in assets, expenses, and dividend accounts, and decreases in liability, equity, and revenue accounts.

Double-Entry Accounting

An accounting method where every financial transaction is recorded in at least two accounts: one with a debit and one with a credit.

Dual Effect

The principle in accounting that every transaction has a double impact on the financial statements, typically affecting at least two accounts.