Use the Given Degree of Confidence and Sample Data to Find

question 123

Multiple Choice

Use the given degree of confidence and sample data to find a confidence interval for the population standard deviation σ.
Assume that the population has a normal distribution. Round the confidence interval limits to one more decimal place
than is used for the original set of data.
-The amounts (in ounces) of juice in eight randomly selected juice bottles are: $\begin{array} { l l l l } 15.2 & 15.1 & 15.9 & 15.5 \end{array}$
$\begin{array} { l l l l l } 15.6 & 15.1 & 15.8 & 15.0 \end{array}$
Find a $98 \%$ confidence interval for the population standard deviation $\sigma$ .

• A) \(0.21 \mathrm { oz } < \sigma < 0.71 \mathrm { oz }\)
• B) \(0.20 \mathrm { oz } < \sigma < 0.71 \mathrm { oz }\)
• C) \(0.21 \mathrm { oz } < \sigma < 0.82 \mathrm { oz }\)
• D) \(0.22 \mathrm { oz } < \sigma < 0.86 \mathrm { oz }\)

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Definitions:

Working Capital

It is the difference between a company's current assets and current liabilities, indicating the liquidity available to fund operations.

Distributorship

A business arrangement in which one company grants another company or individual the right to sell its goods or products within a specified territory or market.

Annual Net Cash

The total amount of cash that a business generates and uses over a one-year period, after all expenditures are accounted for.

After-Tax Discount Rate

The rate used to discount future cash flows after taxes in investment analysis to find their present value.