A Student Wanted to Construct a 95% Confidence Interval for the Average

question 75

Multiple Choice

A student wanted to construct a 95% confidence interval for the average age of students in her statistics class. She randomly selected 9 students. Their average age was 19.1 years with a standard deviation of 1.5 years. What is the 99% confidence interval for the population mean?

• A) [17.42, 20.78]
• B) [17.48, 20.72]
• C) [14.23, 23.98]
• D) [0.44, 3.80]

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Definitions:

Market Rate

The current price at which an asset or service can be bought or sold in a particular market.

Coupon Rate

The interest rate stated on a bond or other fixed-income security, expressed as a percentage of its face value.

Issued At 98

A term indicating that a bond or other security was issued at a price below its par or face value, in this case, at 98% of the face value.

Book Value

The net value of a company's assets as recorded on the balance sheet, calculated by subtracting liabilities from the total assets.