The State Highway Department Is Studying Traffic Patterns on One

question 73

Short Answer

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. What is the 98 percent confidence interval estimate of μ, the mean number of cars passing the intersection?

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, which is typically charged as a percentage of the principal loan amount.

Dividends Per Common Share

The amount of a company's profit distributed to each outstanding share of common stock.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, often used to assess if a stock is over or under-valued.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues, indicating the financial performance over a specific time period.