Given the following points: (-2, 0), (-1,0), (0,1), (1, 1) and (2, 3) What is the critical value necessary to determine a confidence interval for a 95% level of confidence?
Answer(s): C
Look at the t tables for n-2 degrees of freedom at the 5% level. Here, we look for a two tailed test with 5-2 = 3 degrees of freedom. This is 3.182.
The net incomes of a sample of importers were organized into the following table:Net Income (in $ millions) Number of Importers2 - 415 - 748 - 101011 - 13314 - 162What is the mean net income?
Answer(s): D
(3*1)+(6*4)+(9*10)+(12*3)+(15*2) = 183. Mean is 183/20 = 9.15
Tom wants to retire a millionaire. If he is 30 years old today, what monthly payment would he need to make beginning one month from today and continuing until he retires on his 65th birthday, if the money will earn 8% per year, compounded monthly?
Answer(s): B
The total number of deposits will be 420 (35 years x 12 months/year). On the BAII Plus, press 420 N, 8 divide 12 = I/Y, 0 PV, 1000000 FV, CPT PMT. On the HP12C, press 420 n, 8 ENTER 12 divide i, 0 PV, 1000000 FV, PMT. Note that the answer will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.
What deposit today is needed to have $4,000 in 4 years, assuming the money will earn interest at 5% per year, compounded monthly?
On the BAII Plus, press 48 N, 5 divide 12 = I/Y, 0 PMT, 4000 FV, CPT PV. On the HP12C, press 48 n, 5 ENTER 12 divide i, 0 PMT, 4000 FV, PV. Make sure the BAII Plus has the P/Y value set to 1.
What is the difference between a sample mean and the population mean called?
Answer(s): A
This is the error incurred when sampling from a population.
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