Provide an Appropriate Response

question 25

Multiple Choice

Provide an appropriate response.
-The number of violent crimes committed in a day possesses a distribution with a mean of 3.8 crimes per day and a standard deviation of 2 crimes per day. A random sample of 100 days was observed, and the mean number of crimes for the sample was calculated. Describe the sampling distribution of the sample mean.

• A) approximately normal with mean = 3.8 and standard deviation = 0.2
• B) approximately normal with mean = 3.8 and standard deviation = 2
• C) shape unknown with mean = 3.8 and standard deviation = 2
• D) shape unknown with mean = 3.8 and standard deviation = 0.2

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Definitions:

Capital Structure

The mix of various forms of external funds and equity that a firm uses to finance its activities.

High Leverage

Refers to the use of significant amounts of borrowed money (debt) to increase the potential return of an investment.

Interest Obligations

The amount of interest that a borrower is contractually obligated to pay to lenders over a specified period of time.

Equity Capital

Funds that are invested in a company by its shareholders in exchange for ownership rights or shares, representing the risk capital of the business.