The average annual return for the S&P 500 from 1886 to 2006 is 5%, with a standard deviation of 15%. Based on these numbers, what is a 95% confidence interval for 2007's returns?

A) -12.5%, 17.5%
B) -15%, 25%
C) -25%, 35%
D) -25%, 25%


Answer: C

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Interest on a six-month, 7 percent, $2,000 note is calculated by multiplying $2,000 ´ 7/100 ´ 6/12

Indicate whether the statement is true or false

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Whenever the probability is proportional to the length of the interval in which the random variable can assume a value, the random variable is _____ distributed.

A. uniformly B. normally C. Poisson D. exponentially

Business

Imagine you were asked to work for a residential construction company. How would you build a moral case for this company to engage in corporate social responsibility and environmentally sustainable business practices?

A. Well-conceived CSR strategies and sustainable business practices are in the best long-term interest of the owners of the construction firm. B. If the construction firm makes a strong commitment to socially responsible behavior, doing so will reduce the risk of reputation-damaging incidents. C. Socially responsible actions and sustainable business practices can lower the construction firm's costs and enhance employee recruiting and workforce retention. D. Like any business, the construction firm must engage in practices that reflect ordinary decency and civic-mindedness, and contribute to society's well-being. E. Opportunities for revenue enhancement may also come from CSR and environmental sustainability strategies by the construction firm.

Business

Before conducting marketing research, it is important to establish in advance exactly what problem needs to be solved.

Answer the following statement true (T) or false (F)

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