THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 44

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A career counselor is interested in examining the salaries earned by graduate business school students at the end of the first year after graduation.In particular,the counselor is interested in seeing whether there is a difference between men and women graduates' salaries.From a random sample of 20 men,the mean salary is found to be $42,780 with a standard deviation of $5,426.From a sample of 12 women,the mean salary is found to be $40,136 with a standard deviation of $4,383.Assume that the random sample observations are from normally distributed populations,and that the population variances are assumed to be equal.
-In order to construct a confidence interval estimate for the difference between two population means,independent samples are obtained from two normal populations with unknown but assumed to be equal variances.If the first sample contains 18 items and the second sample contains 14 items,which of the following distributions will be used?

• A)the t distribution with 32 degrees of freedom
• B)the t distribution with 17 degrees of freedom
• C)the t distribution with 13 degrees of freedom
• D)the t distribution with 30 degrees of freedom

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Definitions:

Risky Securities

Financial instruments carrying a higher potential for loss, often offering greater potential returns to compensate for the increased risk.

Portfolio Variance

A measure of the dispersion of returns of a portfolio, calculated as the weighted average of the covariance of each asset in the portfolio.

Coefficient of Correlation

A statistical measure that indicates the degree to which two variables move in relation to each other, ranging from -1 to 1.