A Survey by American Express Spending Reported That the Average

question 62

Multiple Choice

A survey by American Express Spending reported that the average amount spent on a wedding gift for a close family member is $166. A random sample of 45 people who purchased wedding gifts for a close family member spent an average of $160.50. Assume that the population standard deviation is $38. Use a 95% confidence interval to test the validity of this report and choose the one statement that is correct.

• A)Because this confidence interval does not include $166, the report by American Express Spending is not validated.
• B)Because this confidence interval does include $166, the report by American Express Spending is not validated.
• C)Because this confidence interval does include $166, the report by American Express Spending is validated.
• D)Because this confidence interval does not include $166, the report by American Express Spending is validated.

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Definitions:

Marketing Plan

A comprehensive document that outlines a company's overall marketing effort, including strategies, objectives, and actions to achieve marketing goals.

Valid Assumptions

Assumptions that are logically justified and supported by evidence or sound reasoning.

Historical Data

Information from the past used for research, analysis, and planning by providing context or comparison for current conditions or forecasts.

Alternative Contingencies

Different or backup plans developed to address potential future events or circumstances that may impact objectives.