A Researcher Is Interested in Evaluating a Certain Brand of Radial

question 72

Short Answer

A researcher is interested in evaluating a certain brand of radial auto tire. Twenty tires are randomly selected from retail outlets throughout the country, and each is placed on a special machine which rotates the tires at a constant speed (equivalent to 55 miles per hour) against the friction equivalent of a 4000 pound auto being driven on a smooth highway. Each tire is run until there is no tread left. The number of miles (in thousands) were as follows: 40, 30, 32, 35, 39, 35, 31, 36, 37, 35, 34, 35, 37, 34, 36, 38, 35, 36, 35, 36.
-Estimate the population mean within a confidence interval of .95.

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Definitions:

Unrealized Increase/Decrease

Refers to the change in value of an investment that has not been sold, affecting the company’s balance sheet but not its income statement.

Trading Securities

Financial instruments that are purchased by a company not for long-term investment but rather with the intention to trade in the short term for profit.

Unrealized Holding

Gains or losses on investments that a company has not sold yet and hence are not recorded in the financial statements.

Fair Value

The price that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.