A Used Car Lot Owner Wanted to Estimate the Amount

question 1

Multiple Choice

A used car lot owner wanted to estimate the amount spent by customers during the summer months. She took a random sample of customers and recorded the amount they spent. A histogram showed the data was right- skewed so she took the log of each value and verified that the distribution of these values was more Normally distributed. What test/method should she use to estimate the mean amount spent during the summer months?

• A)Mann- Whitney Test
• B)Data transformation
• C)Paired t- test
• D)Sign Test

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Definitions:

Profitable

An economic condition where revenue exceeds the costs and expenses incurred in producing goods or services.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Raw Material Costs

The expenses associated with acquiring the unprocessed materials required for the production of goods or services.

Demand Curve

A chart displaying how consumer demand for a product varies based on its price.