Suppose a Sample of N = 50 Items Is Drawn

question 90

Multiple Choice

Suppose a sample of n = 50 items is drawn from a population of manufactured products and the weight, X, of each item is recorded. Prior experience has shown that the weight has a probability distribution with µ = 6 ounces and a = 2.5 ounces. Which of the following is true about the sampling distribution of the sample mean if a sample of size 15 is selected?

• A) The shape of the sample distribution is approximately normal.
• B) The mean of the sampling distribution is 6 ounces.
• C) The standard deviation of the sampling distribution is 2.5 ounces.
• D) All of the above are correct.

---

Definitions:

Retail Inventory Method

An accounting technique used to estimate inventory value by converting retail prices to cost prices.

Cost To Retail Ratio

A method to estimate the value of ending inventory and cost of goods sold based on the ratio of cost to the retail price of goods.

Ending Inventory

The cost of items on offer at the close of an accounting term.

FIFO

"First-In, First-Out," an inventory management and valuation method where the earliest goods acquired are the first sold or used.