The Management of a Department Store Is Interested in Estimating

question 10

Multiple Choice

The management of a department store is interested in estimating the difference between the mean credit purchases of customers using the store's credit card versus those customers using a national major credit card.You are given the following information. $$\begin{array} { l l l } & \text { Store's Card } & \text { Major Credit Card } \\\text { Sample size } & 64 & 49 \\\text { Sample mean } & \$ 140 & \$ 125 \\\text { Population standard deviation } & \$ 10 & \$ 8\end{array}$$ A 95% confidence interval estimate for the difference between the average purchases of all customers using the two different credit cards is

• A) 13.31 to 16.69.
• B) 11.68 to 18.32.
• C) 12.22 to 17.78.
• D) 13.04 to 16.96.

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Definitions:

Profit Maximization

The process of increasing a company's profit to the highest possible level through the adjustment of sales, production, and pricing strategies.

Society's Resources

The assets, both tangible and intangible, that are available for use by the members of a society.

Government Intervention

Actions taken by a government to influence or directly regulate economic, social, or other activities within a country.

Socioeconomic

Pertaining to the relationship between social and economic elements.