Suppose Taxi Fare from Logan Airport to Downtown Boston Is

question 94

Multiple Choice

Suppose taxi fare from Logan Airport to downtown Boston is known to be normally distributed with a standard deviation of $2.50.The last seven times John has taken a taxi from Logan to downtown Boston,the fares have been $22.10,$23.25,$21.35,$24.50,$21.90,$20.75,and $22.65.What is a 95% confidence interval for the population mean taxi fare?

• A) [$17.4571,$27.2571]
• B) [$20.5051,$24.2091]
• C) [$20.8027,$23.9115]
• D) [$21.6571,$23.0571]

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Definitions:

Precautionary Motive

The desire to hold cash or liquid assets to guard against unforeseen future needs and emergencies.

Transaction Motive

The need for cash to meet immediate and anticipated demands for payment, a key reason for holding cash in business.

Speculative Motive

The intention to hold cash or other assets in anticipation of future market fluctuations to gain financial advantages.

Collection Float

The time period between when a check is deposited and when the funds become available in the recipient's account, affecting the cash flow and liquidity.