Use the Given Degree of Confidence and Sample Data to Construct

question 27

Multiple Choice

Use the given degree of confidence and sample data to construct a confidence interval for the population proportion p.
-When 334 college students are randomly selected and surveyed, it is found that 103 own a car. Find a 99% confidence interval for the true proportion of all college students who own a car.

• A) \(0.250 < p < 0.367\)
• B) \(0.259 < p < 0.358\)
• C) \(0.267 < p < 0.350\)
• D) \(0.243 < p < 0.373\)

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, which is considered a non-operating expense on the income statement.

Effective Interest Method

A way of amortizing bond premiums or discounts over the bond's life that reflects the constant yield to maturity.

Premium Amortization

The process of gradually writing off the initial premium paid on a bond above its par value over the life of the bond.

Bonds

Bonds are financial instruments representing a loan made by an investor to a borrower, typically corporate or governmental, which pays interest over time and returns the principal at maturity.