How Is the Bootstrap Standard Error Calculated

question 37

Multiple Choice

How is the bootstrap standard error calculated?

• A)It is the difference between the estimate of a parameter obtained by bootstrapping and the estimate obtained using classical methods.
• B)It is the standard deviation divided by the square root of the sample size.
• C)It is the standard deviation of the bootstrap distribution.
• D)It is the standard deviation of the original sample that is used to bootstrap the statistic.

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Definitions:

Financial Intermediary

An institution that acts as a middleman between savers and borrowers, facilitating the flow of funds in the economy.

Households

Units of individuals living together, making joint decisions on consumption, savings, and investments, fundamental to economic analysis.

Common Stock

A form of corporate equity ownership, a type of security that represents ownership in a corporation and entitles the owner to a share of the company's profits.

Corporate Bond

A debt security issued by a corporation to raise financing for capital improvements, expansion, or other operational needs.