A University Placement Office Conducted a Survey of 100 Engineers

question 228

Multiple Choice

A university placement office conducted a survey of 100 engineers who had graduated from a local university. For these engineers, the mean salary was computed to be $72,000 with a standard deviation of $8,000. Which of the following best characterizes the percentage of these engineers who earn either more than $96,000 or less than $48,000?

• A) approximately 2.3%
• B) at least 5.6% (1/18 of the engineers)
• C) at most 5.6% (1/18 of the engineers)
• D) at most 11.1% (1/9 of the engineers)

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting and investment appraisal.

Fair Value

Fair value refers to the estimated market value of an asset or liability, based on current market conditions and comparable transactions, used in financial reporting.

Capital Lease

A lease considered to have the economic characteristics of asset ownership for accounting purposes.

Operating Lease

A contract that allows for the use of an asset but does not convey rights of ownership of the asset.