Use the Given Degree of Confidence and Sample Data to Find

question 37

Multiple Choice

Use the given degree of confidence and sample data to find a confidence interval for the population standard deviation ?.
Assume that the population has a normal distribution. Round the confidence interval limits to the same number of decimal places as the sample standard deviation.
-The mean replacement time for a random sample of 20 washing machines is 9.4 years and the standard deviation is 2.5 years. Construct a 99% confidence interval for the standard deviation, ?, of the replacement times of all washing machines of this type.

• A) \(1.8 \mathrm { yr } < \sigma < 4.2 \mathrm { yr }\)
• B) \(1.8 \mathrm { yr } < \sigma < 3.9 \mathrm { yr }\)
• C) \(1.7 \mathrm { yr } < \sigma < 4.8 \mathrm { yr }\)
• D) \(1.8 \mathrm { yr } < \sigma < 5.3 \mathrm { yr }\)

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Definitions:

CCA Class

Categories used in Canadian tax law to determine the depreciation rate for various types of assets for tax purposes.

Net Advantage To Leasing

The financial benefit gained from leasing an asset as opposed to purchasing it, typically considered from a tax or cash flow perspective.

Tax Loss Carryovers

A provision that allows a taxpayer to use a net operating loss in one year to offset taxable income in future years.

CCA Class

Capital Cost Allowance (CCA) Class refers to categories used in taxation to determine the depreciation rate that can be claimed for tax purposes on assets, depending on their nature and use in a business.