One of the Leading Dot-Com Companies Has Found That the Proportion

question 129

Multiple Choice

One of the leading dot-com companies has found that the proportion of customers who come into its Web site that actually makes a purchase is 0.045. The company plans to see whether this rate still holds by selecting a random sample of 200 hits on its Web site. Given that the 0.045 rate still applies, what is the standard deviation of the sampling distribution?

• A) Approximately 0.0147
• B) About 0.0002
• C) About 0.0354
• D) Can't be determined without knowing the mean.

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Definitions:

Interest Rate

The rate at which a borrower pays interest for the money borrowed from a lender.

Loanable Funds

The total funds available for borrowing in the economy, coming from savings, that are used for investments and consumption.

Interest Rate

The fraction of a loan incurred as interest by the borrower, often depicted as an annual percentage of the outstanding loan amount.

Capital Flight

The rapid movement of large sums of money out of a country, typically to escape economic instability or unfavorable investment conditions.