To Compute the Necessary Sample Size for an Interval Estimate

question 24

Multiple Choice

To compute the necessary sample size for an interval estimate of a population mean, all of the following procedures are recommended when σ is unknown except​

• A) ​use the estimated σ from a previous study.
• B) ​use the sample standard deviation from a preliminary sample.
• C) ​use judgment or a best guess.
• D) use .5 as an estimate.

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Definitions:

Discount Factor(s)

A multiplier used in discounted cash flow analysis to determine the present value of future cash flows, reflecting the time value of money.

Discount Rate

Discount rate is the interest rate used to determine the present value of future cash flows, essential in evaluating investment opportunities and financial decisions.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of investments.

Discount Factor(s)

A multiplicative factor used to calculate the present value of future cash flows by accounting for the time value of money.