A University Wants to Increase Its Retention Rate of 4

question 18

Multiple Choice

A university wants to increase its retention rate of 4% for graduating students from the previous year.After implementing several new programs during the last two years,in 2004 the university reevaluated its retention rate using a random sample of 352 students and found the retention rate at 5%.Create a 95% confidence interval for the proportion of students (in 2004) who had been retained.

• A)Based on the data,we are 95% confident the proportion of students in 2004 who had been retained is between 1.95% and 7.05%.
• B)Based on the data,we are 95% confident the proportion of students in 2004 who had been retained is between 4% and 6%.
• C)Based on the data,we are 95% confident the proportion of students in 2004 who had been retained is between 1.16% and 8.84%.
• D)Based on the data,we are 95% confident the proportion of students in 2004 who had been retained is between 2.72% and 7.28%.
• E)Based on the data,we are 95% confident the proportion of students in 2004 who had been retained is between 1.95% and 6.05%.

---

Definitions:

Par Value

The face value of a bond or stock, as determined at the time of issuance.

Reverse Stock Split

A reverse stock split is an action taken by a corporation to reduce the number of its current shares in the market, thereby increasing the share price.

Market Price

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

Shares Outstanding

Represents the total number of a company's shares that are currently owned by shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.