Use the Normal to Model the Distribution of Sample Proportions

question 15

Multiple Choice

Use the Normal to model the distribution of sample proportions.
-The owner of a pet store is trying to decide whether to discontinue selling specialty
Clothes for pets. She suspects that only 4% of the customers buy specialty clothes for
Their pets and thinks that she might be able to replace the clothes with more profitable
Items. In a typical day there are 275 customers. Which of the following statements is
(are) true about the sampling distribution of the sample proportion of customers who buy
Specialty clothes for their pets at this store?

• A) The sampling distribution can be described a Normal model.
• B) The mean of the sampling distribution is 0.04.
• C) The standard deviation of the sampling distribution is 0.012.
• D) All of the above.
• E) None of the above.

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Definitions:

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit.

Operating Activity

Activities that involve the core business operations of a company, such as selling, managing, and producing goods and services.

Paying Interest

The act of providing compensation to lenders for the use of borrowed money, usually calculated as a percentage of the principal amount.