A Random Sample of 40 College Students Has a Mean

question 9

Multiple Choice

A random sample of 40 college students has a mean earnings of $3120 with a standard deviation of $677 over the summer months. Determine whether a normal distribution or a t-distribution should be used or whether
Neither of these can be used to construct a confidence interval.

• A)Use normal distribution.
• B)Use the t-distribution.
• C)Cannot use normal distribution or t-distribution.

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Definitions:

Treasury Stock Approach

A method used in calculating the share price impact of stock options by assuming that any proceeds from option exercises are used to buy back shares at the current price.

Parent's Common Stock

The equity interest held in a parent company, representing a claim on its assets and earnings.

Subsidiary Ownership

The holding of majority or significant shares in another company, allowing the parent company to control or influence its operations and decisions.

Consolidated Income Tax Return

A combined tax return for a parent company and its subsidiaries, allowing the entire group to be treated as a single entity for tax purposes.