Exhibit 10-1
Salary information regarding male and female employees of a large company is shown below.
-Refer to Exhibit 10-1. At 95% confidence, the margin of error is
A)1.96
B)1.645
C)3.920
D)2.000

Question

Exhibit 10-1
Salary information regarding male and female employees of a large company is shown below. 
-Refer to Exhibit 10-1. At 95% confidence, the margin of error is
A)1.96 
B)1.645 
C)3.920 
D)2.000

Quizplus · Accepted Answer

The formula for margin of error is (z-score)(standard deviation of sample). The sample standard deviation for females is given as $4,000 and the sample standard deviation for males is given as $3,000. Since we are given a confidence level of 95%, the z-score would be 1.96. Therefore, the margin of error for both genders would be:
(1.96)($4,000) for females = $7,840
(1.96)($3,000) for males = $5,880
Since we are asked for the margin of error at 95% confidence, we can take the largest margin of error, which is for females, giving us a margin of error of $7,840. Therefore, the answer is C.

Exhibit 10-1 Salary Information Regarding Male and Female Employees of a Large