A Major Department Store Chain Is Interested in Estimating the Mean

question 151

Multiple Choice

A major department store chain is interested in estimating the mean amount its credit card customers spent on their first visit to the chain's new store in the mall.Fifteen credit card accounts were randomly sampled and analyzed with the following results: = $50.50 and S = 20.Assuming the distribution of the amount spent on their first visit is normal,what is the shape of the sampling distribution of the sample mean that will be used to create the desired confidence interval for μ?

• A)approximately normal with a mean of $50.50
• B)a standard normal distribution
• C)a t distribution with 15 degrees of freedom
• D)a t distribution with 14 degrees of freedom

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Definitions:

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

Balance of Payments

A financial statement that summarizes a country’s transactions with the rest of the world, including imports, exports, and capital flows.

Credit Item

An entry that increases the balance in a bank account or financial statement, signifying an inflow of funds.

American Car

Refers to automobiles manufactured by companies based in the United States, known for their significant contribution to the automotive industry.