A Sample of N = 4 Scores Is Selected from a Population

question 22

Multiple Choice

A sample of n = 4 scores is selected from a population with an unknown mean.The sample has a mean of M = 40 and a variance of s² = 16.Which of the following is the correct 90% confidence interval for μ?

• A)μ = 40 ± 2.353(4)
• B)μ = 40 ± 1.638(4)
• C)μ = 40 ± 2.353(2)
• D)μ = 40 ± 1.638(2)

---

Definitions:

Break-Even Default Rate

The rate of default at which a lender breaks even on a loan, neither earning a profit nor incurring a loss.

Monthly Interest Rate

The interest rate expressed as a monthly percentage, reflecting the cost of borrowing or the earnings on savings for one month.

Credit Policy

Guidelines that a company follows to determine credit terms for customers, which can affect the company's cash flow and bad debt levels.

Reorder Point

The inventory level at which a new order should be placed to replenish stock before it becomes too low, calculated based on lead time and sales velocity.