Automobile Mechanics Conduct Diagnostic Tests on 150 New Cars of Particular

question 9

Multiple Choice

Automobile mechanics conduct diagnostic tests on 150 new cars of particular make and model to determine the extent to which they are affected by a recent recall due to faulty catalytic converters.They find that 42 of the new cars tested do have faulty catalytic converters.What is the margin of error for a 99% confidence interval based on these sample results?

• A)0.0366
• B)0.0719
• C)0.0944
• D)0.1140
• E)0.2876

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Definitions:

Accrued Interest

Accrued Interest is the interest that has been incurred but not yet paid or received as of a specific date.

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's profits or losses.

Voting Stock

Shares of a company that grant the shareholder the right to vote on corporate matters and elect the board of directors.

Net Loss

Net loss occurs when a company's expenses exceed its revenues during a specific accounting period, resulting in a negative profit.