A Large National Company Is Considering Negotiating Cellular Phone Rates

question 31

Multiple Choice

A large national company is considering negotiating cellular phone rates for its employees.The Human Resource department would like to estimate the proportion of its employee population who own an Apple iPhone.A random sample of size 250 is taken and 40% of the sample own and iPhone.The 95% confidence interval to estimate the population proportion is _______.

• A)0.35 to 0.45
• B)0.34 to 0.46
• C)0.37 to 0.43
• D)0.39 to 0.41
• E)0.40 to 0.42

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Definitions:

Diversifiable Risk

Risk that can be eliminated either by investing in many projects or by holding the stocks of many companies.

Expected Return

Expected return is the anticipated profit or loss from an investment, factoring in all possible outcomes weighted by their probabilities.

Asset Beta

A constant that measures the sensitivity of an asset’s return to market movements and, therefore, the asset’s nondiversifiable risk.

Market Movements

Market Movements refer to the changes and trends in market prices and volumes over time, influenced by various factors including economic indicators, investor sentiment, and external events.