Exhibit 9-6 A Random Sample of 16 Students Selected from the Student

question 141

Multiple Choice

Exhibit 9-6
A random sample of 16 students selected from the student body of a large university had an average age of 25 years and a standard deviation of 2 years. We want to determine if the average age of all the students at the university is significantly more than 24. Assume the distribution of the population of ages is normal.
-Refer to Exhibit 9-6. At 95% confidence, it can be concluded that the mean age is

• A)not significantly different from 24
• B)significantly different from 24
• C)significantly less than 24
• D)significantly more than 24

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Definitions:

Coupon Rate

The annual interest rate paid by a bond, expressed as a percentage of the face value.

Yield To Maturity

The overall gain expected from a bond, provided it is kept until its due date, including all received interest and the principal amount's reimbursement.

Semi-Annually

Happening biannually, usually once every six months.

Face Value

Face value is the nominal value or dollar value printed on a security or a bond, representing the amount to be repaid at maturity.