A Researcher Found That a 98% Confidence Interval for the Mean

question 313

Multiple Choice

A researcher found that a 98% confidence interval for the mean hours per week spent studying by
College students was (13, 17) . Which is true?
I. There is a 98% chance that the mean hours per week spent studying by college students is
Between 13 and 17 hours.
II. 98% of college students study between 13 and 17 hours a week.
III. Students average between 13 and 17 hours per week studying on 98% of the weeks.

• A) I only
• B) I and III
• C) III only
• D) none of these
• E) II only

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Definitions:

Commercial Banks

Financial institutions that accept deposits, offer checking account services, and provide business, personal, and mortgage loans.

Thrift Institutions

Financial institutions that primarily accept savings deposits and make mortgage and other loans.

Actual Reserves

The total funds a bank has in its vault or deposited with the central bank, available for immediate use.

Required Reserves

Required reserves refer to the minimum amount of funds that a bank must hold in reserve against deposits, as mandated by central banking regulations to ensure bank liquidity.