In a Recent Survey of Drinking Laws, a Random Sample $\mathrm { p } _ { 1 } - \mathrm { p } _ { 2 }$

question 16

Multiple Choice

In a recent survey of drinking laws, a random sample of 1000 women showed that 65 % were in favor of increasing the legal drinking age. In a random sample of 1000 men, 60 % favored increasing the legal drinking age. Construct a 95% confidence interval for $\mathrm { p } _ { 1 } - \mathrm { p } _ { 2 }$

• A) (0.008,0.092)
• B) (0.587,0.912)
• C) (-1.423,1.432)
• D) (-2.153,1.679)

---

Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; used in the Capital Asset Pricing Model to determine risk.

Unsystematic Risk

The risk of price change due to the unique circumstances of a specific security, as opposed to overall market movement, which can be diversified away.

Statistical Tests

Analytical procedures used to determine the significance of collected data by comparing it against a predetermined threshold or value.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification.