Students Who Graduated from College in 2010 Owed an Average

question 56

Multiple Choice

Students who graduated from college in 2010 owed an average of $25,250 in student loans.An economist wants to determine if average debt has changed.She takes a sample of 40 recent graduates and finds that their average debt is $27,500 with a standard deviation of $9,120.Use 90% confidence interval.Which of the following conclusion is correct?

• A) The average debt decreased.
• B) The average debt increased.
• C) The average debt has not changed.
• D) There is not enough information.

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Definitions:

Financial Position

Financial position is the status of a person's or entity's assets, liabilities, and equity at a given point in time, providing a snapshot of financial health.

Financial Position Valuations

Assessments that determine the value of a company's assets, liabilities, and equity at a particular time, reflecting its financial health.

Average

A numerical value derived from the sum of several quantities divided by the number of quantities.