Use the Margin of Error, Confidence Level, and Standard Deviation

question 136

Multiple Choice

Use the margin of error, confidence level, and standard deviation ? to find the minimum sample size required to estimate an unknown population mean µ
-Margin of error: $126, confidence level: 99%, = $534

• A)69
• B)61
• C)105,268
• D)120

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Definitions:

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, calculating the rate of return at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.

Discount Factor

A number used to calculate the present value of future cash flows; it reflects the time value of money.

Operating Costs

Expenses involved in the day-to-day functions of a business related to its operations, potentially including both cost of goods sold and operating expenses.

Salvage Value

The estimated resell value of an asset at the end of its useful life.