Analysis of a Random Sample of 250 Nova Scotia Nurses

question 68

Multiple Choice

Analysis of a random sample of 250 Nova Scotia nurses produced a 95% confidence interval for the mean annual salary of $42,807 < μ(Nurse Salary) < $49,699.

• A)About 95% of Nova Scotia nurses earn between $42,807 and $49,699.
• B)We are 95% confident that the average nurse salary in the Canada is between $42,807 and $49,699.
• C)About 95% of the nurses surveyed earn between $42,807 and $49,699.
• D)We are 95% confident that the interval from $42,807 to $49,699 contains the true mean salary of all Nova Scotia nurses.
• E)If we took many random samples of Nova Scotia nurses,about 95% of them would produce this confidence interval.

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Definitions:

Strike Price

The fixed price at which an option's holder has the right to purchase (if a call option) or sell (if a put option) the underlying asset or commodity.

Option Premium

An option premium is the price that a buyer pays to the seller for an options contract, which gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price.

Conversion Price

The predetermined price at which convertible securities can be exchanged for common stock.

Convertible Bond

A type of bond that can be converted into a predetermined number of the issuing company's shares at certain times during its life, usually at the discretion of the bondholder.