Fulsome University Has 16,059 Students

question 94

Essay

Fulsome University has 16,059 students. In a sample of 200 students, 12 were born outside the United States. Construct a 95 percent confidence interval for the true population proportion. How large a sample is needed to estimate the true proportion of Fulsome students who were born outside the United States with an error of ± 2.5 percent and 95 percent confidence? Show your work and explain fully.

---

Definitions:

Nominal Rate

The interest rate stated on a loan or investment agreement before any adjustment for inflation or other factors.

Inflation Rate

The percentage increase in the general level of prices for goods and services in a country over a period of time.

Real Rate

The Real Rate refers to the interest rate adjusted for inflation, representing the true cost of borrowing or the true return on investment.

Risk Premium

The additional return expected by an investor for taking on a higher level of risk compared to a risk-free asset.