A Company Manager Thinks He Is Overpaying for Fertilizer at $174

question 26

Short Answer

A company manager thinks he is overpaying for fertilizer at $174 per ton. To find out, he collects fertilizer prices per ton from five distributors. Construct a 90% confidence interval from his results: 128, 140, 170, 166, and 156.

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Definitions:

Market Price

The existing rate at which a service or asset is traded within a marketplace.

Buy Back

A corporate action in which a company purchases its own shares from the marketplace, reducing the number of outstanding shares.

Treasury Stock

Shares of a company's own stock that it has reacquired and holds in its treasury rather than retiring them.

Sale Price

The final amount at which a product or service is sold to consumers, after any discounts or adjustments.