The State Highway Department Is Studying Traffic Patterns on One

question 98

Multiple Choice

The state highway department is studying traffic patterns on one of the busiest highways in the state. As part of the study, the department needs to estimate the average number of vehicles that pass an intersection each day. A random sample of 64 days gives us a sample mean of 14,205 cars and a sample standard deviation of 1,010 cars. After calculating the confidence interval, the highway department officials decide that the precision is too low for their needs. They feel the precision should be 300 cars. Given this precision, and needing to be 99 percent confident, how many days do they need to sample?

• A) 109
• B) 80
• C) 79
• D) 62
• E) 9

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Definitions:

Market Exposure

The degree to which an investment or portfolio is exposed to market risk.

Securities Act of 1933

A U.S. federal law aimed at ensuring transparency and fairness in the securities market by requiring companies to disclose relevant financial information.

Investment Company Act of 1940

US federal legislation that regulates the organization of investment companies and the activities they engage in.

NAV (Net Asset Value)

The per-share value of a mutual fund or ETF, calculated by dividing the total value of all the securities in its portfolio, minus liabilities, by the number of shares outstanding.