The Local Swim Team Is Considering Offering a New Semi-Private $\sigma$

question 94

Multiple Choice

The local swim team is considering offering a new semi-private class aimed at entry-level swimmers, but needs a minimum number of swimmers to sign up in order to be cost effective.Last year's data showed that during 8 swim sessions the average number of entry-level swimmers attending was 15.Suppose the instructor wants to conduct a hypothesis test and the alternative hypothesis is "the population mean is greater than 15." If the sample size is 5, $\sigma$ is known, and α = .01, the critical value of z is _______.

• A)2.575
• B)-2.575
• C)2.33
• D)-2.33
• E)2.45

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Definitions:

Discount Rate

The Discount Rate represents the interest rate applied to calculate the present value of future cash flows within discounted cash flow analysis.

Present Value

The worth as of today of a future money sum or cash flow series, taking into consideration a specific rate of return.

Present Values

This is a concept in finance that calculates the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Discount Rate

This rate is applied in the framework of DCF analysis for the purpose of calculating the current value of foreseeable cash flows.