A Manager of a Local Store Wants to Estimate the Mean

question 58

Multiple Choice

A manager of a local store wants to estimate the mean amount spent per shopping visit by customers. Summary statistics from a sample taken reveal the following: The store manager wonders whether the population mean could have been $50 or $60.

• A) Since $60 is within the 95% confidence interval, the population mean is likely to be $60.
• B) Since $60 is not within the 95% confidence interval, the population mean is not likely to be $60.
• C) Since $50 is within the 95% confidence interval, the population mean is likely to be $50.
• D) Since $50 is not within the 95% confidence interval, the population mean is not likely to be $50.
• E) B & C are true

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Definitions:

Net Realizable Value

The estimated selling price in the regular course of business minus any costs of completion, disposal, and transportation.

Inventory

The goods and materials a business holds for the purpose of sale or production.

Remeasured

The process of adjusting the value of an asset or liability to reflect its current market value or to correct any errors in initial measurement.

Depreciation Expense

The portion of the total cost of a tangible asset that is charged as an expense to the income statement over its useful life, reflecting wear and tear.