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1. When the t distribution is used in constructing a confidence interval based on a sample size of less than 30, what assumption must be made about the shape of the underlying population?
2. Why are the t values listed in the df 5 infinity row of the t distribution table identical to the z values that correspond to the same right-tail areas of the standard normal distribution? What does this indicate about the relationship between the t and standard normal distributions?
3. In using the t distribution table, what value of t would correspond to an upper-tail area of 0.025 for 19 degrees of freedom?
4. In using the t distribution table, what value of t would correspond to an upper-tail area of 0.10 for 28 degrees of freedom?
5. For df 5 25, determine the value of A that corre- sponds to each of the following probabilities:
a. P(t $ A) 5 0.025
b. P(t # A) 5 0.10
c. P(2A # t # A) 5 0.99
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Blue should have taken $455 and $3,636 cost recovery in2006 and 2007. On January 1, 2008, the asset was sold for $98,000. Calculate the gain or loss on the sale of the asset in2008.
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