You Are Interested in Purchasing a New Car

question 41

Multiple Choice

You are interested in purchasing a new car. One of the many points you wish to consider is the resale value of the car after 5 years. Since you are particularly interested in a certain foreign sedan, you decide to estimate the resale value of this car with a 90% confidence interval. You manage to obtain data on 17 recently resold 5-year-old foreign sedans of the same model. These 17 cars were resold at an average price of $12,630 with a standard deviation of $800. Suppose that the interval is calculated to be ($12,291.23, $12,968.77) . How could we alter the sample size and the confidence coefficient in order to guarantee a decrease in the width of the interval?

• A) Decrease the sample size but increase the confidence coefficient.
• B) Increase the sample size and increase the confidence coefficient.
• C) Keep the sample size the same but increase the confidence coefficient.
• D) Increase the sample size but decrease the confidence coefficient.

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Definitions:

Louis Vuitton

A luxury fashion brand founded in France, known for its leather goods, high-end clothing, and accessories, characterized by distinctive designs and craftsmanship.

Assets

Economic resources or valuable items owned by individuals or organizations that have potential or actual value and can contribute to wealth.

Wealth

An abundance of valuable resources or material possessions, or the control of such assets.

Stocks

Financial instruments that represent an ownership share in a company, granting the holder a claim on part of the company's assets and profits.