The US Department of Agriculture Wants to Estimate the Acres

question 121

Multiple Choice

The US department of Agriculture wants to estimate the acres of corn that Iowa farmers will plant in the coming year.Suppose five Iowa farmers are selected at random and asked how many acres of corn they plan to plant.Results of the survey are given below: If there are 7500 farms in Iowa, give the 95% confidence interval estimate of the TOTAL number of corn acres that Iowa farmers intend to plant.Show the upper bound for your interval.

• A)754,360
• B)620,562
• C)537,378
• D)894,375
• E)920,362

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Definitions:

Internal Rate

Generally refers to the internal rate of return (IRR), which is a metric used in capital budgeting to estimate the profitability of potential investments.

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business.

Net Present Value

A financial metric used to evaluate the profitability of an investment, representing the difference between the present value of cash inflows and outflows over a period.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of maximizing shareholder wealth.