A Random Sample of 100,000 Credit Sales in a Department

question 73

Multiple Choice

A random sample of 100,000 credit sales in a department store showed an average sale of $87.25. From past data, it is known that the standard deviation of the population is $20.00. What is the 95% confidence interval of the population mean?

• A) $87.22 to $87.28
• B) $87.13 to $87.37
• C) $19.97 to $20.03
• D) $19.88 to $20.12

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Definitions:

Owner's Drawings

Owner's disbursements from a business in either a sole proprietorship or partnership for personal expenditures.

Salaries and Wages Expense

The total amount spent by a business on its employees' salaries and wages during a specific period.

Equipment

Tangible assets used in operations, such as machinery and office hardware, which are subject to depreciation over their useful lives.

Debit

A financial record that boosts asset or expense ledgers or reduces liability, equity, or income ledgers.