Exhibit 8-1 in Order to Estimate the Average Time Spent on the on the Computer

question 61

Multiple Choice

Exhibit 8-1
In order to estimate the average time spent on the computer terminals per student at a local university, data were collected for a sample of 81 business students over a one-week period. Assume the population standard deviation is 1.8 hours.
-Refer to Exhibit 8-1. If the sample mean is 9 hours, then the 95% confidence interval is

• A)7.04 to 110.96 hours
• B)7.36 to 10.64 hours
• C)7.80 to 10.20 hours
• D)8.61 to 9.39 hours

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Definitions:

Operating Expenses

Costs related to the day-to-day operations of a business, excluding the cost of goods sold, such as rent, utilities, and payroll.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the good.

Transfer Price

The cost at which divisions within the same organization trade goods and services with each other.

Operating Income

Earnings from a company’s primary business activities, excluding deductions of interest and taxes.