A Major Department Store Chain Is Interested in Estimating the Average

question 39

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. Construct a 95% confidence interval for the average amount its credit card customers spent on their first visit to the chain's new store in the mall assuming that the amount spent follows a normal distribution.

• A) $50.50 ± $9.09
• B) $50.50 ± $10.12
• C) $50.50 ± $11.00
• D) $50.50 ± $11.08

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Definitions:

Price High

Typically refers to a situation where the price of a good or service is higher than usual, which can result from high demand, low supply, or other market conditions.

Positive-Sum Game

A situation in economic transactions where all participants can benefit, or the sum of the gains and losses is positive.

Payoff Matrix

A table that displays the potential outcomes for each player in a game, given the choices of all players.

Gains and Losses

The difference between the amount earned and the amount spent in buying, operating, or producing something.