A Random Sample of 500 Reports an Average Yearly Income $\pm$

question 49

Multiple Choice

A random sample of 500 reports an average yearly income of $42,000 with a standard deviation of $1000.An estimate of the parameter at the 95% level is about $175 wide.In this research situation,

• A)we can be 95% confident that the population mean is 42,000\(\pm\) 175.
• B)the sample size is much too small to justify the use of estimation procedures.
• C)the alpha level is 1000.
• D)the sample mean is $175.

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Definitions:

Profitability

A measure of how much profit a company generates compared to its revenues.

Debt

An amount of money borrowed by one party from another, under the condition that it is to be paid back at a later date, often with interest.

Liquidity

The ease with which an asset can be converted into cash without significant loss in value.