Life Tests Performed on a Sample of 13 Batteries of a New

question 4

Multiple Choice

Life tests performed on a sample of 13 batteries of a new model indicated: (1) an average life of 75 months, and (2) a standard deviation of 5 months.Other battery models, produced by similar processes, have normally distributed life spans.The 98% confidence interval for the population mean life of the new model is _________.

• A)63.37 to 86.63
• B)61.60 to 88.41
• C)71.77 to 78.23
• D)71.28 to 78.72
• E)79.86 to 81.28

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Definitions:

Required Rate

The minimum rate of return that an investment or project must offer to be considered viable or attractive.

Operating Assets

Assets used in the daily operations of a business to generate revenue, such as plant, equipment, inventory, and receivables.

Residual Income

The income that an entity generates after accounting for the cost of capital, showing what is effectively left over for shareholders.

Centralized Organizations

Organizations where decision-making authority is concentrated at the top levels of management, with lower levels primarily responsible for implementing decisions.