A Random Sample of 144 Bottles of Cologne Showed an Average

question 73

Multiple Choice

A random sample of 144 bottles of cologne showed an average content of 4 ounces. It is known that the standard deviation of the contents (i.e., of the population) is 0.3 ounces. In this problem the 0.3 is

• A) a parameter.
• B) a statistic.
• C) the standard error of the mean.
• D) the average content of colognes in the long run.

---

Definitions:

Net Method

An accounting practice where discounts for early payment are assumed to be taken and purchase or sale transactions are recorded at the net, discounted amount.

Periodic Inventory Method

An accounting method where the inventory is physically counted at specific intervals and the cost of goods sold is calculated afterwards.

Merchandise Purchase

Transactions related to buying goods for sale, typically finished goods, in a retail or wholesale setting.

Credit Terms

The conditions under which credit is extended by a seller to a buyer, detailing the repayment period, discount for early payment, and the annual interest rate if applicable.