The 95% Confidence Interval Arrived at from a Particular Experiment

question 62

Multiple Choice

The 95% confidence interval arrived at from a particular experiment is 72-79. This means that _________.

• A) the probability is 0.95 that µ falls between 72-79
• B) the probability is 0.95 that the interval 72-79 contains
• C) the probability is 0.95 that the interval 72-79 contains µ
• D) a and c

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Definitions:

Liquidity

How effortlessly an asset can be turned into cash without altering its market price.

Periodic Inventory System

An inventory accounting system where the inventory level is updated and the cost of goods sold is calculated at the end of a period, rather than after each sale.

Purchases Account

An account used in accounting to record the total cost of goods bought for resale during an accounting period.

Freight In

The cost of transporting goods into a business, usually included in the cost of inventory.