Brenda has money invested in Esti Transport. She owns two par value $1,000 bonds issued by Esti Transport, which currently sells
bonds at a market rate of 101.345. She also owns 116 shares of Esti Transport stock, currently selling for $15.22 per share. If, when Brenda made her initial investments, Esti Transport bonds had a market rate of 96.562 and Esti Transport stock had a share price of $13.40, which side of Brenda’s investment has gained a greater percent return, and how much greater is it? a.
The bonds showed a return that was 4.78 percentage points higher than that of the stocks.
b.
The bonds showed a return that was 4.95 percentage points higher than that of the stocks.
c.
The stocks showed a return that was 8.63 percentage points higher than that of the bonds.
d.
The stocks showed a return that was 3.58 percentage points higher than that of the bonds.
Bonds tend to offer a greater risk, while bonds tend to offer a greater return.
The 90% confidence interval for the mean score of all takers of this test is between 59.92 and 64.08. The lower end is 59.92, and the upper end is 64.08.
Step-by-step explanation:
We have that to find our level, that is the subtraction of 1 by the confidence interval divided by 2. So:
Now, we have to find z in the Ztable as such z has a pvalue of .
So it is z with a pvalue of , so
Now, find the margin of error M as such
In which is the standard deviation of the population and n is the size of the sample.
The lower end of the interval is the sample mean subtracted by M. So it is 62 - 2.08 = 59.92
The upper end of the interval is the sample mean added to M. So it is 62 + 2.08 = 64.08.
The 90% confidence interval for the mean score of all takers of this test is between 59.92 and 64.08. The lower end is 59.92, and the upper end is 64.08.