In Order to Estimate the Difference Between the Average Yearly

question 42

Short Answer

In order to estimate the difference between the average yearly salaries of top managers in private and governmental organizations, the following information was gathered. ​
Develop an interval estimate for the difference between the average yearly salaries of top managers of the two sectors.Use 95% confidence and give your answers in dollars.

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Definitions:

Payback

The period of time required for the return on an investment to "pay back" the initial capital outlay.

Cost of Capital

Cost of capital refers to the minimum rate of return a company must earn on its investments to satisfy its investors, creditors, and other providers of capital.

NPV

Net Present Value, a method for assessing the worth of a project or investment by applying a discount rate to future cash flows to ascertain their current value.

Crossover Rate

The rate at which two projects have the same net present value, used in capital budgeting to compare the attractiveness of different projects.