A Large University Is Interested in the Outcome of a Course

question 77

Short Answer

A large university is interested in the outcome of a course standardization process. They have taken a random sample of 100 student grades, across all instructors. The grades represent the proportion of problems answered correctly on a midterm exam. The sample proportion correct was calculated as 0.78.
A) Construct a 90% confidence interval on the population proportion of correctly answered problems.
B) Construct a 95% confidence interval on the population proportion of correctly answered problems.

• A) Construct a 90% confidence interval on the population proportion of correctly answered problems.
• B) Construct a 95% confidence interval on the population proportion of correctly answered problems.

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Definitions:

American Put

An option contract giving the holder the right, but not the obligation, to sell a specified amount of an asset at a predetermined price before or on a specified expiration date.

European Call

An option contract that allows the holder to buy the underlying asset at a specific price only on the expiration date.

American Option

A type of options contract that allows the holder to exercise the option at any time before and including its expiration date.

Expiration Date

The specified date on which an option, futures contract, or other derivative ceases to exist.