Suppose You Have a Random Sample of 200 Students' GMAT $\left( \frac { 50 } { \sqrt { 200 } } \right)$

question 32

Multiple Choice

Suppose you have a random sample of 200 students' GMAT scores that have a sample mean of 700 and sample standard deviation of 50, and would like to calculate the 90 percent confidence interval of the population mean. Which of the following would be the correct construction?

• A) 700 ± 1.65 \(\left( \frac { 50 } { \sqrt { 200 } } \right)\)
• B) 700 ± 1.96 \(\left( \frac { 50 } { \sqrt { 200 } } \right)\)
• C) 700 ± 1.65 \(\left( \frac { 50 } { 200 } \right)\)
• D) 700 ± 1.96 \(\left( \frac { 50 } { 200 } \right)\)

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Definitions:

Money Rate

Often referring to the interest rates in financial markets; the cost of borrowing money.

Time Preference

The inclination of individuals to prefer goods and services in the present rather than in the future.

Time Preference

This concept describes individuals' preference for immediate benefits over future ones, influencing their decisions on saving, investing, and consumption.

Time Preference

An individual's preference for receiving goods or services sooner rather than later.