A Population Has a Standard Deviation of 50

question 36

Multiple Choice

A population has a standard deviation of 50. A random sample of 100 items from this population is selected. The sample mean is determined to be 600. At 95% confidence, the margin of error is

• A)5
• B)9.8
• C)650
• D)609.8

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Definitions:

Cost of Equity

The return a firm theoretically pays to its equity investors, i.e., shareholders, to compensate for the risk they undertook by investing their capital.

WACC

Weighted Average Cost of Capital, a calculation that reflects the cost of a company to finance its assets through a mix of equity and debt.

Level of Risk

The level of risk and possible monetary loss associated with making an investment choice.

Weighted Average Cost

A measure that calculates the average cost of goods available for sale, considering the weight of each unit's cost.