A Major Department Store Chain Is Interested in Estimating the Average

question 13

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: $\overline{X} = \$50.50$ 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 ± $11.00
• B) $50.50 ± $9.09
• C) $50.50 ± $10.12
• D) $50.50 ± $11.08

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Definitions:

Lessor

The party in a lease agreement who owns the asset and grants the lessee the right to use the asset in exchange for rental payments.

Upkeep

The process of maintaining or preserving someone or something, or the cost involved in maintaining a property, equipment, etc.

Depreciation Tax Shield

A reduction in taxable income for businesses that results from the allowance for depreciation expenses.

CCA Class

Stands for Capital Cost Allowance Class, which is a categorization used in Canadian tax law for the purpose of calculating depreciation for tax purposes.