Exhibit 8-3

question 11

Multiple Choice

Exhibit 8-3.Professors of Accountancy are in high demand at American universities.A random sample of 28 new accounting professors found the average salary was 135 thousand dollars with a standard deviation of 16 thousand dollars.Assume the distribution is normally distributed. Refer to Exhibit 8-3.Construct a 95% confidence interval for the salary of new accounting professors.Answers are in thousands of dollars.

• A)[102.1680,167.832]
• B)[127.8247,142.1753]
• C)[128.7953,141.2047]
• D)[129.0735,140.9265]

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Definitions:

Reality

The actual condition of affairs, in contrast to a theoretical or imaginary version of them.

Good Theory

A well-substantiated explanation of some aspect of the economic world that can predict outcomes and withstand empirical testing.

Forecasting Ability

The capability to predict future trends, events, or behaviors based on past and current data.

Complex Reality

The concept that reality is composed of many interacting components that can be difficult to fully understand or predict.