The Phrase "95% Confidence" in a Confidence Statement Means That

question 31

Multiple Choice

The phrase "95% confidence" in a confidence statement means that

• A) the results are true for 95% of the population.
• B) 95% of the population falls within the announced margin of error.
• C) the probability is 0.95 that a randomly chosen individual's value falls within the announced margin of error.
• D) the results were obtained using a method that gives correct answers in 95% of all samples.

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Definitions:

Journal Entry

A record in accounting that denotes a business transaction, including information on the accounts affected and whether they are debited or credited.

Footnotes

Additional information provided at the bottom of financial statements to provide more detail or clarify the data presented in the statements themselves.

Lessor Maintains Control

A leasing arrangement where the lessor retains substantial control or rights in the leased asset during and after the lease term.

Lease Term

The duration of time for which a lease agreement is effective, specifying the rights and obligations of the lessor and lessee.