Use the Following Information to Answer the Question

question 2

Multiple Choice

Use the following information to answer the question. According to the website ww.costofwedding.com, the average cost of flowers for a wedding is $698. Recently, in a random sample of 40 weddings in the U.S. it was found that the average cost of the flowers was $734, with a standard deviation of $102. On the basis of this, a 95% confidence interval for the mean cost of flowers for a wedding is $701 to $767.
-Choose the statement that is the best interpretation of the confidence interval.

• A)In about 95% of all samples of size 40, the resulting confidence interval will contain the mean cost of flowers at weddings.
• B)We are extremely confident that the mean cost of flowers at a wedding is between $701 and $767.
• C)That probability that flowers at a wedding will cost less than $767 is nearly 100%.
• D)That probability that the flowers at a wedding will cost more than $698 is greater than 5%.

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Definitions:

Total Activity Cost

The complete cost associated with a specific business activity, encompassing both direct and indirect expenses.

Activity Costs

Expenses tied to specific activities, such as production or research and development, often used in activity-based costing.

Prevention Cost

Expenses incurred to avoid defects in products or services, including costs associated with quality planning, training, and process control.

Finished Products

Goods that have completed the manufacturing process and are ready for sale to customers.