The Management of a Department Store Is Interested in Estimating

question 49

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. $$\begin{array} { l l l } & \text { Store's Card } & \text { Major Credit Card } \\\text { Sample size } & 64 & 49 \\\text { Sample mean } & \$ 140 & \$ 125 \\\text { Population standard deviation } & \$ 10 & \$ 8\end{array}$$ At 95% confidence, the margin of error is

• A) 1.694.
• B) 3.32.
• C) 1.96.
• D) 15.

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Definitions:

Total Revenue

The sum of all earnings a company acquires from selling goods or offering services over a specific timeframe.

Total Cost

The sum of fixed costs and variable costs incurred by a firm in the production of a good or service.

Break-even Price

The price level at which total revenues are equal to total costs, resulting in neither profit nor loss.

Economic Losses

The decrease in economic value arising from factors such as poor decisions, market shifts, or external disruptions affecting profitability.