Use the Microsoft Excel Function CONFIDENCE

question 72

Multiple Choice

Use the Microsoft Excel function CONFIDENCE.NORM to find the confidence interval for a population mean of $19 at a 95% level of confidence with a sample size of 12 and standard deviation of $1.8.

• A)$17.98 to $20.02
• B)$18.97 to $19.03
• C)-$4.52 to $42.52
• D)$17.20 to $20.80

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from a country's central bank's discount window; also the rate used to discount future cash flows in discounted cash flow analysis.

Project Risk

The potential for losses or less-than-expected outcomes in a specific project, due to factors such as cost overruns, underperformance, or delays.

Funding Sources

Various origins of capital used to start or expand a business, including debt financing, equity financing, and internal funds.

Cost of Capital

The cost of capital is the rate of return a company must earn on its investments to maintain its market value and attract funds, including the cost of equity and debt.