If You Wish to Estimate the Difference Between Two Population

question 106

Multiple Choice

If you wish to estimate the difference between two population means when the population variances are known, the 99% confidence interval estimate can be developed using which of the following critical values of z?

• A) 2.575
• B) 1.645
• C) 2.325
• D) 1.275
• E) 2.582

---

Definitions:

Retained Earnings

The portion of a company's net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Constant Growth

A model assuming that a company's dividends will continue to grow at a constant rate indefinitely, used in valuing stocks.

Preferred Stock

A class of stock that has a higher claim on assets and earnings than common stock, often with fixed dividends.

Annual Dividend

The total amount of money paid to shareholders from a company's profits over the course of a year per share of stock.