You Wish to Construct a 90% Confidence Interval to Compare

question 12

Multiple Choice

You wish to construct a 90% confidence interval to compare the mean measurement for two groups.A small pilot study yields sample standard deviations of 10 and 12 for Group 1 and Group 2,respectively.If we wish to obtain a margin of error of at most 2,what sample size should we take from each group? Assume equal sample sizes.

• A)165
• B)168
• C)169
• D)166
• E)167

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Definitions:

Time Value

The idea that money currently in hand is more valuable than an identical sum received later, because of its ability to earn more over time.

Relevant Cash Flow

Cash flows that will occur as a direct result of a decision made by a business, essential in capital budgeting and investment analysis.

Interest Expense

The cost incurred by an entity for borrowed funds, often a significant component of its operating costs.

Initial Cost

The total expense incurred to acquire an asset, including the purchase price and any other costs necessary to get the asset ready for use.