The Department of Education Wishes to Estimate the Average SAT

question 55

Short Answer

The Department of Education wishes to estimate the average SAT score among U.S. high school students. How many students would they have to sample, given that the test has a known population standard deviation of 100, in order to ensure that the margin of error was no more than 20 for a 99% confidence interval?

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Definitions:

Book Value

Book value is the net value of a company's assets minus its liabilities, as recorded on the balance sheet, often used to assess if a stock is under or overvalued by comparing to its market value.

Market-to-Book Ratio

A ratio used to compare a company's current market price to its book value, indicating the value placed on the company by the stock market.

Book Value

Represents the net asset value of a company, calculated by total assets minus intangible assets (patents, goodwill) and liabilities.

Fixed Assets

Long-term tangible assets, such as buildings and machinery, used in operating a business and not expected to be consumed or converted into cash within a year.