CFA Level I · CFA Level I Exam · Estimation and Hypothesis Testing
An analyst uses the sample mean of monthly returns to estimate the population mean return. The sample mean calculated from a single sample is best described as a:
The sample mean from one sample is a point estimate. It is a single value used to estimate the unknown population mean. A confidence interval would be a range of values, and a sampling distribution is the distribution of the estimator over many samples.
- Apoint estimateCorrect
- Bconfidence interval
- Csampling distribution
Explanation
A single number calculated from sample data to estimate a population parameter is a point estimate. A confidence interval is a range built around the estimate, and a sampling distribution describes how the estimator varies across repeated samples.
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