A Marketing Company Reviewing the Length of Television Commercials Monitored

question 683

Multiple Choice

A marketing company reviewing the length of television commercials monitored a random sample
Of commercials over several days. They found that a 95% confidence interval for the mean length
(in seconds) of commercials aired daily was (23, 27) . Which is true?

• A) Commercials average between 23 and 27 seconds long on 95% of the days.
• B) 95% of all the commercials aired were between 23 and 27 seconds a day.
• C) 95% of all samples would show mean commercial length between 23 and 27 seconds.
• D) We're 95% sure that the mean commercial length is between 23 and 27 seconds.
• E) 95% of the commercials they checked were between 23 and 27 seconds long.

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Definitions:

Quarterly Compounding

The process of calculating interest and adding it to the principal sum of a loan or deposit on a quarterly basis.

Effective Rate

The interest rate on a loan or investment, adjusted for the effect of compounding over a given period.

Compounded Quarterly

Generating interest on both the initial principal and previously earned interest every three months.

Annual Inflation Rate

The percentage increase in the price of goods and services over a one-year period, reflecting the decreasing purchasing power of a currency.