The Width of a Confidence Interval Estimate for a Proportion

question 150

Multiple Choice

The width of a confidence interval estimate for a proportion will be:

• A)narrower for 90% confidence than for 95% confidence.
• B)wider for a sample size of 100 than for a sample size of 50.
• C)narrower for 99% confidence than for 95% confidence.
• D)narrower when the sample proportion if 0.50 than when the sample proportion is 0.20.

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Definitions:

Net Present Value

A calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time to evaluate an investment.

Depreciable Equipment

Tangible assets used in business operations whose cost is allocated over its useful life due to wear and tear, obsolescence, or decay.

Operating Assets

Assets that are used in the day-to-day operations of a business, such as machinery, buildings, and equipment.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows, reflecting the time value of money and risk of the investment.