The Average Weekly Earnings of Bus Drivers in a City

question 73

Short Answer

The average weekly earnings of bus drivers in a city are $950 that is μ) with a standard deviation of $45 that is
σ). Assume that we select a random sample of 81 bus drivers.
a. Compute the standard error of the mean.
b. What is the probability that the sample mean will be greater than $960?
c. If the population of bus drivers consisted of 400 drivers, what would be the standard error of the mean?

Identify transactions classified under investing and financing activities.

Comprehend the implications of cash flow information for financial analysis.

Understand adjustments made under the indirect method of cash flows from operating activities.

Understand the components of the statement of cash flows, including cash flows from operating, investing, and financing activities.

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Definitions:

Self-Serving Bias

The common human tendency to attribute positive events to one's own character but attribute negative events to external factors.

Endowment Effect

The tendency people have to place higher valuations on items they possess (are endowed with) than on identical items that they do not possess; perhaps caused by loss aversion.

Time Inconsistency

The tendency of certain conditions or decisions to change over time, especially in the context of economic planning and policy-making.

Prospect Theory

A behavioral economics theory of preferences having three main features: (1) people evaluate options on the basis of whether they generate gains or losses relative to the status quo; (2) gains are subject to diminishing marginal utility, while losses are subject to diminishing marginal disutility; and (3) people are prone to loss aversion.