A University Dean Is Interested in Determining the Proportion of Students

question 182

Multiple Choice

A university dean is interested in determining the proportion of students who receive some sort of financial aid.Rather than examine the records of all students,the dean randomly selects 200 students and finds that 118 of them are receiving financial aid.The 95% confidence interval for π is 0.59 ± 0.07.Interpret this interval.

• A) We are 95% confident that 59% of the students are on some sort of financial aid.
• B) We are 95% confident that the true proportion of all students receiving financial aid is between 0.52 and 0.66.
• C) 95% of the students get between 52% and 66% of their tuition paid for by financial aid.
• D) We are 95% confident that between 52% and 66% of the sampled students receive some sort of financial aid.

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Definitions:

Depreciated Straight-Line

A method of depreciation where an asset's cost is reduced equally over its useful life.

Accounting Rate of Return

A financial ratio that measures the expected profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

Low Level Managers

Managers who operate at the lowest tier of an organization's hierarchy, typically overseeing the work of non-managerial employees and focusing on day-to-day operations.

Discounted Payback

A capital budgeting method that calculates the amount of time required to recoup the initial investment in present value terms.