The Average Monthly Electric Bill of a Random Sample of 256

question 44

Essay

The average monthly electric bill of a random sample of 256 residents of a city is $111 with a standard deviation of $32.
​
a.
Construct a 90% confidence interval for the mean monthly electric bills of all residents.
b.
Construct a 95% confidence interval for the mean monthly electric bills of all residents.

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Definitions:

Bad Debt Expense

An expense reported on the income statement, reflecting the cost of accounts receivable that are not expected to be collected.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and adjust for bad debts.

Direct Write-Off Method

An accounting practice that involves directly writing off an outstanding receivable if deemed uncollectible, impacting earnings directly.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.