A Major Department Store Chain Is Interested in Estimating the Average

question 108

Multiple Choice

A major department store chain is interested in estimating the average 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 S² = 400. Assuming the distribution of the amount spent on their first visit is approximately 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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