Use the Given Degree of Confidence and Sample Data to Construct

question 153

Multiple Choice

Use the given degree of confidence and sample data to construct a confidence interval for the population mean µ. Assume that the population has a normal distribution.
Thirty randomly selected students took the calculus final. If the sample mean was 95 and the standard deviation was 6.6,
Construct a 99% confidence interval for the mean score of all students.

• A) \(91.68 < \mu < 98.32\)
• B) \(91.69 < \mu < 98.31\)
• C) \(92.03 < \mu < 97.97\)
• D) \(92.95 < \mu < 97.05\)

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Definitions:

Moral-Hazard

A situation where one party engages in risky behavior knowing that it is protected against the risk because another party will bear the cost.

Above-Equilibrium Wages

Wages that are higher than the market equilibrium, often used by employers to reduce turnover or increase productivity.

Firms

Businesses or enterprises engaged in commercial, industrial, or professional activities, aiming to earn profits by providing goods or services.

Adverse Selection

A situation in which one party in a transaction has more information than the other, often leading to an imbalance in a market or poor decision-making outcomes.