Solve the Problem $\$ 3595$ Assuming That $\sigma = \$ 898$

question 80

Multiple Choice

Solve the problem.
-A sample of 71 college students yields a mean annual income of $\$ 3595$ . Assuming that $\sigma = \$ 898$ , find the margin of error in estimating $\mu$ at the $99 \%$ level of confidence.

• A)\(\$ 248\)
• B) \(\$ 1099\)
• C) \(\$ 274\)
• D) \(\$ 209\)

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Definitions:

AFN

Additional Funds Needed; the extra funding required by a firm to support its operations and growth.

Additional Funds Needed (AFN)

The projected amount of new external funding required by a firm to support its business expansion and meet its capital requirements.

Target Payout Ratio

Percentage of net income paid as a cash dividend.

Constant Ratio

A financial strategy or policy that maintains a fixed proportionate relationship between two or more variables, such as assets and liabilities.