A Random Sample of 64 Students at a University Showed

question 70

Multiple Choice

A random sample of 64 students at a university showed an average age of 25 years and a sample standard deviation of 2 years.The 98% confidence interval for the true average age of all students in the university is

• A) 20.5 to 29.5.
• B) 24.4 to 25.6.
• C) 23.0 to 27.0.
• D) 20.0 to 30.0.

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Definitions:

Capital Cost Allowance

A tax deduction available in many jurisdictions for businesses, representing a yearly allowance for the wear and tear, deterioration, or obsolescence of the property.

Tax Rate

The fraction of earnings upon which the government imposes taxes on a person or corporate entity.

Interest Expense

The cost incurred by an entity for borrowed funds, typically presented on the income statement.

Incremental Cash Flows

The additional cash flow an entity receives from undertaking a new project or investment.