Suppose We Wish to Calculate a 90% Confidence Interval for the Average

question 2

Multiple Choice

Suppose we wish to calculate a 90% confidence interval for the average amount spent on books by freshmen in their first year at a major university.The interval is to have a margin of error of $2.Assume that the amount spent on books by freshmen has a Normal distribution with a standard deviation of  = $30.How many observations are required to achieve this margin of error?

• A)25
• B)608
• C)609
• D)865

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Definitions:

Entrepreneurship

The act of establishing a company or companies, while accepting monetary risks with the aspiration of earning profits.

Act On Them

To take action or respond based on specific ideas, feelings, or information.

New Opportunities

Fresh ventures or conditions that present potential for profit and growth in a business or personal context.

Corporate Entrepreneur

An individual within a corporation who promotes innovation and new business development, similar to an entrepreneur within a startup.