TABLE 8-15 The President of a University Is Concerned That Illicit Drug

question 9

True/False

TABLE 8-15
The president of a university is concerned that illicit drug use on campus is higher than the 5% targeted level.A random sample of 250 students from a population of 2,000 revealed that 7 of them had used illicit drugs during the last 12 months.
-True or False: Referring to Table 8-15,the president can be 90% confident that no more than 5% of the students at the university had used illicit drugs during the last 12 months.

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Definitions:

IRR

Internal Rate of Return is a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Mutually Exclusive

Describes options or projects that cannot both be chosen such that if one is selected, the other must be rejected.

Value Foregone

The potential value lost when choosing one investment or action over another, often considered an opportunity cost.

Required Rate of Return

The minimum return an investor expects to achieve on an investment, considering the risk involved.