The Lower Limit of a Confidence Interval at the 95

question 55

Multiple Choice

The lower limit of a confidence interval at the 95% level of confidence for the population proportion if a sample of size 200 had 40 successes is:

• A) 0.2554
• B) 0.1446
• C) 0.2465
• D) 0.1535
• E) 0.3390

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Definitions:

Systematic Risk Factors

Market risks that affect the overall market and cannot be eliminated through diversification, such as interest rates, inflation, and economic cycles.

Equally-Weighted Portfolio

An investment portfolio where each asset is allocated the same proportion of the total investment.

Securities

Assets indicating ownership in a company available on the stock market, indebtedness to either a corporate or government issuer, or entitlements to ownership through an option.

Two-Factor Economy

An economic model that considers two distinct factors or variables influencing outcomes, often used in finance to analyze returns or risks.