Choose the One Alternative That Best Completes the Statement or Answers

question 23

Multiple Choice

Choose the one alternative that best completes the statement or answers the question.
-A random sample of 40 part-time workers has a mean annual earnings of $\$ 3120$ and a population standard deviation of $\$ 677$ . Compute the $95 \%$ confidence interval for $\mu$ .

• A) \(( \$ 2910 , \$ 3330 )\)
• B) \(( \$ 210 , \$ 110 )\)
• C) \(( \$ 4812 , \$ 5342 )\)
• D) \(( \$ 1987 , \$ 2346 )\)

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Definitions:

Treasury Bills

Short-term government securities with maturities of one year or less, considered a safe and liquid investment.

Debt-equity Ratio

A numerical expression that demonstrates how a company's assets are financed through shareholders' equity and debt, typically used to analyze financial leverage.

Weighted Average Cost

A calculation that takes into account the varying costs of different sources of capital, weighted by their proportions in the capital structure.

Cost of Equity

The return that investors expect for investing in a company's equity, representing the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.