Explain the difference between a point estimate and an interval estimate. Give an example of each. Describe when a point estimate should be calculated versus an interval estimate.
What will be an ideal response?
A point estimate is your single best guess as to a parameter. For example, x-bar is a point estimate of the mean. An interval estimate provides a range of plausible values for a parameter. For example, a confidence interval of the mean is an interval estimate of the mean. Point estimates are most useful if you need to answer the question, “What is the most likely value for this parameter?” Interval estimates are most useful if you need to answer the question, “How precisely can I estimate this parameter?”
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George, John, Paul, Ringo, and Brian are five friends from Iowa. George owes John $100, John owes Paul $200, Paul owes Ringo $300, and Ringo owes Brian $400. John and Paul find a check belonging to George
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Which of the following best describes the profitability index?
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Courts will allow recovery based on an illegal agreement when
a. the parties to the agreement are not equally at fault. b. both parties are in pari delicto. c. a tort is not involved. d. there is not more than one illegal clause.