At the End of 1990,1991,and 1992 the Average Prices of a Share

question 112

Multiple Choice

At the end of 1990,1991,and 1992 the average prices of a share of stock in a money market portfolio were $34.83,$34.65 and $31.26 respectively.To investigate the average share price at the end of 1993,a random sample of 30 stocks was drawn and their closing prices on the last trading day of 1993 were observed with a mean of 33.583 and a standard deviation of 19.149.Estimate the average price of a share of stock in the portfolio at the end of 1993 with a 90% confidence interval.

• A)[27.832 39.334]
• B)[26.732 40.434]
• C)[32.514 34.651]
• D)[32.533 34.633]
• E)[32.269 34.897]

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Definitions:

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as salaries of supervisors and rent of the factory building.

Manufacturing Overhead

Indirect factory-related costs that are incurred when a product is manufactured, including costs related to operations such as utilities and salaries for managers.

Machine-Hours

A metric to quantify the operational time of machines in the production process, essential for calculating manufacturing costs and efficiency.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to products, calculated before the accounting period begins based on estimated costs.