The Manager of the Service Department of a Local Car

question 42

Multiple Choice

The manager of the service department of a local car dealership has noted that the service times of a sample of 30 new automobiles has a standard deviation of 6 minutes.A 95% confidence interval estimate for the standard deviation of the service times (in minutes) for all their new automobiles is

• A) 16.047 to 45.722.
• B) 4.778 to 8.066.
• C) 2.93 to 6.31.
• D) 22.833 to 65.059.

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Definitions:

Unrealized Loss

A decrease in the value of an investment that has not yet been sold and thus, the loss has not been realized.

Gain on Sale of Investment

The profit realized from selling an investment for more than its purchase cost.

Fair Value

The estimated market value of an asset or liability based on current prices in an open and competitive market.

Equity Securities

Financial instruments that represent ownership in a company, such as stocks, entitling holders to dividends and capital gains.