Exhibit 9-4 A Random Sample of 16 Students Selected from the Student

question 27

Multiple Choice

Exhibit 9-4
A random sample of 16 students selected from the student body of a large university had an average age of 25 years. We want to determine if the average age of all the students at the university is significantly different from 24. Assume the distribution of the population of ages is normal with a standard deviation of 2 years.
-Refer to Exhibit 9-4. The test statistic is

• A)1.96
• B)2.00
• C)1.645
• D)0.05

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Definitions:

Discounted

A reduced price from the standard cost of goods or services, often used as a sales promotion.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Discounted Cash Flow (DCF) Analysis

A financial valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.

Discount Factor

A multiplier used in discounted cash flow analysis to present value future cash flows.