A Simple Random Sample of 100 of a Certain Popular

question 100

Multiple Choice

A simple random sample of 100 of a certain popular model car in 2003 found that 20 had a certain minor defect in the brakes.A simple random sample of 400 of this model car in 2004 found that 50 had the minor defect in the brakes.Let p₁ and p₂ be the proportion of all cars of this model in 2003 and 2004,respectively,that actually have the defect.What is a 90% confidence interval for p₁ - p₂?

• A)0.075 ± 0.071
• B)0.075 ± 0.085
• C)0.075 ± 0.112
• D)0.079 ± 0.071

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Definitions:

Portfolio Return

The overall gain or loss experienced by an investment portfolio over a specified period.

Stock Returns

The gain or loss made on an investment in shares, generally represented as a percentage of the investment’s initial cost.

Business Cycle

The fluctuation of economic activity that an economy experiences over a period of time, marked by phases of expansion and contraction.

Interest Rate Fluctuations

Variations in the interest rate over time, which can affect the value of investments, loans, and savings.