In Constructing a 95% Interval Estimate for the Ratio of Two

question 10

Multiple Choice

In constructing a 95% interval estimate for the ratio of two population variances, $\sigma _ { 1 } ^ { 2 }$ / $\sigma _ { 2 } ^ { 2 }$ , two independent samples of sizes 30 and 40 are drawn from the populations. If the sample variances are 425 and 675, then the upper confidence limit is about:

• A) 1.2215.
• B) 0.3132.
• C) 1.2656.
• D) 0.3246.

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Definitions:

Common-Size Statement

A financial statement in which all items are expressed as a percentage of a common base figure, facilitating comparison across different periods or companies.

Net Fixed Assets

The value of a company’s long-term, tangible assets minus any depreciation, representing the net book value of physical assets.

Inventory

The goods and materials that a business holds for the ultimate goal of resale or processing in the production process.

Profit Margin

A financial metric reflecting the percentage of revenue that remains as profit after all expenses are paid, used to assess a company's financial health and efficiency.