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:

Securities Regulation

The body of laws and rules governing securities, including issuing, trading, and disclosures to protect investors and ensure fair markets.

Foreign Markets

Markets outside a company's home country where it conducts or seeks to conduct business.

Anti-Fraud Provisions

Regulatory measures designed to prevent deceit or fraud, especially in financial transactions or securities.

Expropriated Assets

Assets that are forcibly taken from their owners by a government or governmental authority, often without fair compensation, for public use or benefit.