The Management of a Department Store Is Interested in Estimating

question 60

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 point estimate for the difference between the mean purchases of all users of the two credit cards is

• A) 2.
• B) 18.
• C) 265.
• D) 15.

---

Definitions:

Discount Factor(s)

Multipliers used in discounted cash flow (DCF) analyses to convert future cash flows into their present value, reflecting the time value of money.

Discount Rate

The discount rate applied to calculate the current value of future cash flows.

Total Cost Approach

A cost management strategy that considers all possible costs associated with a product or service, aiming for a comprehensive analysis.

Discount Factor(s)

Factors used in financial calculations to determine the present value of future payments or cash flows.