A New-Car Dealer Is Leasing Various Brand-New Randomly Selected Models $16.46 < \sigma ^ { 2 } < 159.10$

question 45

Multiple Choice

A new-car dealer is leasing various brand-new randomly selected models for the monthly rates (in dollars) listed below. Estimate the true population variance (and standard deviation) in leasing
Rates with 90% confidence. Assume the variable is normally distributed.
165 173 200 241 241 245

• A) \(16.46 < \sigma ^ { 2 } < 159.10\)
• \(4.06 < \sigma < 12.61\)
• B) \(599.53 < \sigma ^ { 2 } < 5796.37\)
• \(24.49 < \sigma < 76.13\)
• C) \(19.75 < \sigma ^ { 2 } < 190.92\)
• \(4.44 < \sigma < 13.82\)
• D) \(719.44 < \sigma ^ { 2 } < 6955.64\)
• \(26.82 < \sigma < 83.40\)

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Definitions:

Market For Soda

The commercial space in which various types and brands of soda (sugary, carbonated beverages) are bought, sold, and competed over.

Surplus

The situation in which the quantity supplied of a product exceeds the quantity demanded at the existing price.

Binding Rent-Control

A type of rent regulation where the set price ceilings are below the market equilibrium rent, leading to shortages and reduced quality of rental housing.

Transaction Costs

Expenses incurred in the process of making an economic exchange, including search, information, bargaining, decision, policing, and enforcement costs.