A Computer Package Was Used to Generate the Following Printout $X =$

question 76

Multiple Choice

A computer package was used to generate the following printout for estimating the mean sale price of homes in a particular neighborhood.

$X =$ sale_price

SAMPLE MEAN OF $X = \quad 46,400$
SAMPLE STANDARD DEV $= 13,747$
SAMPLE SIZE OF X $= \quad 15$
CONFIDENCE $= \quad 90$

UPPER LIMIT $= 52,650.6$
SAMPLE MEAN OF X $= \quad 46,400$
LOWER LIMIT $= 40,149.4$

Which of the following is a practical interpretation of the interval above?

• A) 90% of the homes in this neighborhood have sale prices that fall between $40,149.40 and $52,650.60.
• B) We are 90% confident that the true sale price of all homes in this neighborhood fall between $40,149.40 and $52,650.60.
• C) We are 90% confident that the mean sale price of all homes in this neighborhood falls between $40,149.40 and $52,650.60.
• D) All are correct practical interpretations of this interval.

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Definitions:

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Payout Ratio

A financial metric indicating the percentage of earnings paid to shareholders in the form of dividends, reflecting a company's dividend sustainability.

Dividends

Distributions from a company to its shareholders, typically sourced from the firm's earnings.

Net Income

The total profit of a company after all revenues and gains are added together and all expenses and losses are subtracted.