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:

Competitive Process

The dynamic system in which businesses compete with one another for resources, customers, and market share.

Cost Advantages

Refers to the benefit a company has over its competitors in terms of lower production or operation costs.

Monopoly Power

The ability of a single firm or entity to control the market for a good or service, enabling it to influence prices and production levels.

Legal Barriers

Restrictions imposed by law that limit the entry of new firms into an industry or protect existing firms from competition.