A Statistics Professor Wishes to Estimate the Average Mark on a Term

question 24

Multiple Choice

A statistics professor wishes to estimate the average mark on a term test for a course that has multiple sections and many students. A survey of some of the students registered for the course reveals the following results: Determine a 98% confidence interval for the term test results.

• A) [48.0, 93.6]
• B) [66.8, 74.8]
• C) [62.9, 78.71]
• D) [64.2, 77.3]
• E) [60.9, 80.7]

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Definitions:

Market Value

Market value refers to the price at which an asset would trade in a competitive auction setting.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return.

Market Rate

The prevailing interest rate that is available in the marketplace for loans or deposits, often determined by supply and demand forces.

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its face value, reflecting higher than market interest rates or an attractive bond feature.