TABLE 8-12 The President of a University Is Concerned That the Percentage

question 194

Short Answer

TABLE 8-12
The president of a university is concerned that the percentage of students who have cheated on an exam is higher than the 1% acceptable level. A confidential random sample of 1,000 students from a population of 7,000 revealed that 6 of them said that they had cheated on an exam during the last semester.
-Referring to Table 8-12, what is the critical value for the 90% one-sided confidence interval for the proportion of students who had cheated on an exam during the last 12 months?

Identify events and outcomes within the context of probability.

Understand and apply the addition rule of probability.

Recognize examples of probability in everyday situations.

Understand the importance of probability in hypothesis testing.

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Definitions:

Expected EPS

Estimated Earnings Per Share, forecasting a company's profitability on a per share basis.

Share Price

The price of a single share of a company's stock.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, usually on an annual basis.

Optimal Capital Structure

The ideal mix of debt and equity financing that minimizes a company's cost of capital and maximizes its value and stock price.