QUESTION 1

Find the appropriate t-distribution value for the following confidence intervals:

1. 90% confidence, n is24: Answer=

2. 95% confidence, n is16: Answer =

3. 98% confidence, n is26: Answer =

QUESTION 2

If the sample size was 14, and the t-value was 1.771, what is the correct confidence interval?

QUESTION 3

City planners would like to know the average income in Red Deer and would like to conduct a sample to collect this information. The sample data surveyed 256 households which revealed a sample mean of $85,000. The population standard deviation is known to be $13,200.

a) What is the standard error ofthemean?

b) At the 95% confidence level, what is the margin of error?

c) What is the upper limit in the interval?

d) What is the lowerlimitin the interval?

QUESTION 4

Calculate the margin of error for the following confidence intervals:

1. 99% confidence, population standard deviation is 500, n is 100. Margin of error =

2. 98% confidence, sample standard deviation is 125, n is 25. Margin of error =

Final answers rounded to the nearest whole number.

QUESTION 5

Calculate the standard of error of the mean for the following:

A sample of 81 items is selected from a population of 400 which has a standard deviation of 54. Final answer rounded to one decimal place.

Standard error = [a]

QUESTION 6

A sample of 200 students indicated that 120 preferred strawberry icecream to vanilla icecream.

1. What is the sample proportion of students who preferred strawberry icecream?

2. Calculate the standard error of the proportion. Round answer to 3 decimal places.

3. At the 90% confidence interval, calculate the margin of error. Round answer to 2 decimal places.

4. What is the upper limit in this confidence interval?

QUESTION 7

What does the 'alpha' symbol, in confidence intervals, represent?

	a.	the chance of being correct
	b.	the standard error
	c.	the chance of error
	d.	the margin of error

QUESTION 8

1. If a smaller margin of error is required, whatshould be changed?

	a.	decrease the sample size
	b.	increase the sample size
	c.	decrease the population size
	d.	increase the confidence interval

QUESTION 9

If the required margin of error is 225, and the standard deviation is 1200, what would be the appropriate sample size if the confidence interval is 95%

QUESTION 10

If the required margin of error is limited to 1.5%, what would be the appropriate sample size if the confidence interval is 98%

11.) Tamara purchased 174 shares of All-Canadian Manufacturing Company Stock at $38.50 a share. One year later, she sold the stocks for $46 a share. She paid her broker a $30 commission when she purchased the stocks and a $43 commission when she sold them. During the 12 months that she owned the stocks, she received $167 in dividends. a.Calculate Tamara's annual shareholder return.(Round your intermediate calculations to 3 decimal places and final answer to 1 decimal place. Omit the "%" sign in your response.) Annual shareholder return % b.Break this total return into its components: dividend yield and capital gains yield.(Enter answers in decimals, not in percent. Round "Dividend yield" to 3 decimal places and "Capital gains yield" to 2 decimal places.)

Dividend yield
Capital gains yield

12.) As a shareholder of an oil company, you receive its annual report. In the financial statements, the firm reported assets of $11 million, liabilities of $7 million, after-tax earnings of $2 million, and 755,000 outstanding shares of common stock. a.Calculate the earnings per share of this oil company's common stock.(Round your answer to 2 decimal places. Omit the "$" sign in your response.) Earnings per share $ b.Assuming a share of this oil company's common stock has a market value of $40, what is the firm's price-earnings ratio?(Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) Price-earnings ratio

13.) A procedure in which the current shares of common stock are divided into a larger number of shares is a

Multiple Choice

1. redistribution.
2. IPO.
3. stock split.
4. pre-emptive right.
5. capital expansion.

14.) Preferred shares are considered to be a(n)

Multiple Choice

1. investment riskier than common shares.
2. aggressive investment.
3. completely safe investment.
4. investment safer than bonds.
5. "middle" investment.

15.) An individual reviews a company's expected earnings, its financial strength, the industry it is in and other basic factors to decide if it is a good investment. What type of analysis/theory is being practiced?

Multiple Choice

1. Fundamental analysis
2. Technical analysis
3. Efficient market theory
4. Absolute theory
5. None of the above

16.) A(n) __________ is when a company issues stock to the public for the very first time.

Multiple Choice

1. Proxy
2. Initial public offering
3. Margin
4. Cumulate preferred stock
5. None of the above

17.) Which of the following is true about a short sale?

Multiple Choice

1. There is an extra brokerage fee for executing a short sale.
2. To make money on the transaction the price of the stock must rise significantly.
3. You get to keep any dividends earned on the stock while you have the short sale in place.
4. To make money on the transaction the price of the stock must decline.
5. All of the above are true.

18.) Assume you purchased a corporate bond at its current market price of $910 on January 1, 2021. It pays 11.75 percent interest annually on December 31 and will mature on December 31, 2030, at which time the corporation will pay you the face value of $1,000. a.Determine the current yield on your bond investment at the time of purchase.(Do not round intermediate calculations and round your final answer to 2 decimal place. Omit the "%" sign in your response.) Current yield % b.Determine the yield to maturity on your bond investment at time of purchase.(Do not round intermediate calculations and round your final answer to 2 decimal place.Omit the "%" sign in your response.) Yield to maturity %

19.) The federal government sells bonds and securities primarily in order

Multiple Choice

1. to let individual investors purchase treasury bills by bidding competitively.
2. to offer lower interest rates than corporate bonds.
3. to finance both the national debt and the government's ongoing activities.
4. to provide investors with securities that carry a reduced risk of default.
5. to employ banks or brokers.

20.) Generally, interest on corporate bonds is paid every

Multiple Choice

1. six months.
2. three months.
3. month.
4. nine months.
5. year.

21.) Which of the following statements is correct?

Multiple Choice

1. Stock is a form of debt capital.
2. Bonds are a form of debt capital.
3. Stock must be repaid at maturity.
4. Bonds do not have to be repaid at maturity.
5. Interest payments to bondholders are at the discretion of the corporation.

22.) If overall interest rates in the economy rise, a corporate bond with a fixed interest rate will generally

Multiple Choice

1. decrease in value.
2. increase in value.
3. remain unchanged.
4. become worthless.
5. be returned to the corporation.

23.) A corporate bond rated AAA by the DBRS would be suitable for:

Multiple Choice

1. every investor
2. very cautious investors
3. speculators
4. no one because the bond issue is in default
5. knowledge investors