Professors of Accountancy Are in High Demand at American Universities

question 92

Multiple Choice

Professors of accountancy are in high demand at American universities.A random sample of 28 new accounting professors found the average salary was $135 thousand with a standard deviation of $16 thousand.Assume the distribution is normally distributed.Construct a 90% confidence interval for the salary of new accounting professors.Answers are in thousands of dollars.

• A) [107.7520,162.2480]
• B) [129.8506,140.1494]
• C) [130.0260,139.9740]
• D) [131.0268,138.9732]

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Definitions:

Payback Method

A capital budgeting technique that calculates the time required to recoup the cost of an investment, focusing on cash flows rather than profitability or cost of capital.

Bias Towards Liquidity

A preference or inclination for holding or investing in liquid assets, usually due to concerns about future cash needs or market volatility.

Project Analysis

The process of evaluating the financial and operational implications of a proposed project or investment to determine its viability and expected returns.

Net Present Value

An economic indicator for assessing an investment's gainfulness, which involves the deduction of the present value of cash expenditures from the present value of cash receipts over a certain period.