Suppose You Plan to Build a 98% Confidence Interval Estimate

question 42

Multiple Choice

Suppose you plan to build a 98% confidence interval estimate of a population mean, using a sample of size 121.You will be estimating the population standard deviation with the sample standard deviation.The appropriate t-value for your interval would be ____ which you could approximate with a z score of _______ from the normal table.

• A)2.358, 2.33
• B)1.289, 2.33
• C)1.658, 1.96
• D)1.980, 1.96
• E)2.617, 2.33

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Definitions:

Best Case Scenario

The most favorable or desirable outcome possible in a given situation.

Worst Case Scenario

the most adverse condition or outcome that can reasonably be projected.

Base Case

The default scenario in scenario analysis, used as a benchmark to compare the outcomes of alternative assumptions or actions.

NPV

Net Present Value, a calculation used to assess the profitability of an investment by summing the present values of all expected future cash flows minus the initial investment cost.