A Simple Random Sample of 60 Households in City 1

question 46

Multiple Choice

A simple random sample of 60 households in City 1 is taken.In the sample,there are 45 households that decorate their houses with lights for the holidays.A simple random sample of 50 households is also taken from the neighboring City 2.In the sample,there are 40 households that decorate their houses.We wish to estimate the difference in proportions of households that decorate their houses with lights for the holidays,with a 95% confidence interval.What is the standard error of the difference in sample proportions?

• A)0.040
• B)0.0795
• C)0.0802
• D)0.1125

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Definitions:

Capital Lease

A lease agreement that is classified as a purchase by the lessee for accounting purposes, because it transfers substantially all the risks and rewards of ownership.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Lease Payments

Periodic payments made by a lessee to a lessor for the use of an asset over a specified lease term.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows.