A Pressure Gauge in a Cannery Reads 42

question 24

Multiple Choice

A pressure gauge in a cannery reads 42.057 psi (pounds per square inch) . If the desired reading is 42.05 psi with a tolerance of ±0.004 psi, is the gauge within the tolerance bounds? What is the tolerance range?

• A)Yes; ±42.054 psi
• B)Yes; 42.054 psi and 42.046 psi
• C)No; ±42.046 psi
• D)No; 42.054 psi and 42.046 psi

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Definitions:

Portfolio Variance

A measure used in finance to quantify the volatility from the mean return of a portfolio, indicating the spread of its returns.

Cyclical Stock

A stock whose price is affected by macroeconomic changes in the overall economy and tends to rise and fall with the business cycle.

Countercyclical Stock

A stock whose performance is inversely related to the economy's performance, typically doing well during economic downturns.

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks. It is widely used for pricing risky securities.