State the Properties of Student S T-Distribution
-A Computer Package $\$ 49,000$

question 64

Multiple Choice

State the Properties of Student s t-Distribution
-A computer package was used to generate the following printout for estimating the sale price of condominiums in a particular neighborhood.



A friend suggests that the mean sale price of homes in this neighborhood is $\$ 49,000$ . Comment on your friend's suggestion.

• A) Based on this printout, all you can say is that the mean sale price might be \(\$ 49,000\).
• B) Your friend is wrong, and you are \(95 \%\) certain.
• C) Your friend is correct, and you are \(95 \%\) certain.
• D) Your friend is correct, and you are \(100 \%\) certain.

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Definitions:

Straight-line Depreciation

A method for dispersing the cost of a physical asset across its useful life in even annual allocations.

Discounted Payback

A capital budgeting method used to determine the profitability of an investment by calculating the time it takes for the present value of cash flows to cover the initial investment cost.

Annual Cash Flows

The total amount of money being transferred in and out of a business, considered on a yearly basis.

Required Rate

The minimum return an investor expects to achieve on an investment, considering its risk, also known as the hurdle rate or the required rate of return.