Provide an Appropriate Response $98 \%$ Confidence Interval for the True Mean

question 72

Multiple Choice

Provide an appropriate response.
-The grade point averages for 10 randomly selected junior college students are listed below. Assume the grade point averages are normally distributed. Find a $98 \%$ confidence interval for the true mean.
$\begin{array} { l l l l l l l l l l } 2.0 & 3.2 & 1.8 & 2.9 & 0.9 & 4.0 & 3.3 & 2.9 & 3.6 & 0.8 \end{array}$

• A) \(( 1.55,3.53 )\)
• B) \(( 0.67,1.81 )\)
• C) \(( 2.12,3.14 )\)
• D) \(( 3.11,4.35 )\)

---

Definitions:

MM Model

Refers to the Modigliani-Miller theorem, which proposes that under certain market conditions and assumptions, the value of a firm is unaffected by its capital structure.

Bankruptcy Risk

The likelihood that a company will be unable to meet its financial obligations and may have to declare bankruptcy.

Debt Financing

Raising funds through borrowing, typically by issuing bonds or taking out loans, which must be repaid at a later date, usually with interest.

Cash Preservation

The practice of managing resources to ensure sufficient liquidity and minimize financial risk.