You Want to Build a 99% Confidence Interval Estimate of the Mean

question 67

Multiple Choice

You want to build a 99% confidence interval estimate of the mean of a large population.You want the margin of error to be no more than 5.You estimate that the population standard deviation is 50.How big a sample should you select?

• A)634
• B)753
• C)666
• D)442
• E)258

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, reflected as a charge on the income statement.

Average Collection Period

The average number of days it takes for a company to receive payment from its customers for invoices issued.

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are converted into cash over a period, measuring the efficiency of a company in collecting its debts.

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term debts using its current assets.