A Sample of Components Made by a Factory in China

question 7

Multiple Choice

A sample of components made by a factory in China shows that 6 out of a sample of 50 were found to be faulty. What is the width of a 95% confidence interval (z = 1.96) for the defect rate (2 decimal places) ?

• A) 0.12 ± 0.06
• B) 0.12 ± 0.09
• C) 0.12 ± 0.12
• D) 0.12 ± 0.15

---

Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, especially considered when assessing liquidity and financial stability.

Operating Activities

The day-to-day actions that are involved in running a business, typically involving production, sales, and delivery of a company's product or service.

Dividends Per Share

The amount of dividend a company pays out to each shareholder for each share they own, typically expressed on an annual basis.

P/E

Price-to-Earnings Ratio, a valuation metric comparing the current share price of a company to its per-share earnings.