1. Snacks Inc. has a mean expected return of 15%, with a standard deviation of 2%. The CFO is going to the bank to discuss a large loan. The banker asks what range of returns, with a 99% confidence level, will contain Snacks true expected returns next year.

a. (9%, 21%)

b. (13%, 17%)

c. (11%, 19%)

d. Cannot calculate due to the lack of information

2. Snacks Inc. has a mean expected return of 15%, with a standard deviation of 3%. The CFO is going to the bank to discuss a large loan. The banker asks what range of returns, with a 68% confidence level, will contain Snacks true expected returns next year.

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