You Wish to Construct a 90% Confidence Interval to Compare

question 4

Multiple Choice

You wish to construct a 90% confidence interval to compare the mean measurement for two groups.A small pilot study yields sample standard deviations of 10 and 15 for Group 1 and Group 2,respectively.If we wish to obtain a margin of error of at most 3,what sample size should we take from each group? Assume equal sample sizes.

• A)99
• B)96
• C)97
• D)100
• E)98

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Definitions:

Discount on Bonds Payable

The difference between the face value of a bond and its selling price, when the bond is sold for less than its face value.

Market Rate of Interest

The interest rate prevailing in the market for securities of similar risk and maturity.

Amortization

The gradual reduction of a debt over a period of time through regular payments that cover interest and principal.