A Commuter Travels Many Miles to Work Each Morning

question 27

Multiple Choice

A commuter travels many miles to work each morning. She has timed this trip 5 times during the last month. The time (in minutes) required to make this trip was 38,33,36,47,and 41. What is the standard deviation for this sample data?

• A) 28.5
• B) 11
• C) 22.8
• D) 5.34
• E) 4.77

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Definitions:

Cost of Equity

The cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in the valuation of investments or projects.

NPV

Net Present Value, a calculation used to assess the profitability of an investment or project, considering the time value of money.

Target Company

A firm that another company seeks to acquire.