A Recent Survey Asked a Sample of 1010 People If

question 4

Multiple Choice

A recent survey asked a sample of 1010 people if they were baseball fans; 454 people in the sample said Yes. Assuming there is no bias, one can be 95 percent confident that the percent of all adults who are baseball fans is approximately between:

• A) 41 percent and 49 percent.
• B) 42 percent and 48 percent.
• C) 40 percent and 50 percent.
• D) 37 percent and 53 percent.
• E) 34 percent and 56 percent.

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Definitions:

Liquidity Risk

The risk of loss to an investor from the inability to sell a security to another investor at a price close to its true value.

Maturity Risk

The risk associated with the time until the bond or other fixed income instrument pays its principal back. It can affect interest rates and investment value.

Default Risk

The likelihood that a borrower will fail to meet the obligations of paying back debt, impacting the safety of the investment.

Federal Government Debt

The total amount of money that the national government has borrowed through various means, including Treasury bonds, bills, and notes.