A Population Has a Mean of 80 and a Standard

question 105

Multiple Choice

A population has a mean of 80 and a standard deviation of 7. A sample of 49 observations will be taken. The probability that the mean from that sample will be larger than 82 is

• A)0.5228
• B)0.9772
• C)0.4772
• D)0.0228

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Definitions:

Salvage Value

The expected remaining valuation of an asset after its service life has ended.

Straight-Line Method

A method of allocating the cost of a tangible asset over its useful life in equal annual installments.

Net Present Value

A method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period.

Discount Rate

The interest rate used in discounted cash flow (DCF) analyses to determine the present value of future cash flows.