Use the Normal to Model the Distribution of Sample Proportions

question 11

Multiple Choice

Use the Normal to model the distribution of sample proportions.
-The owner of a small convenience store is trying to decide whether to discontinue
Selling magazines. He suspects that only 5% of the customers buy magazines and thinks
That he might be able to sell something more profitable. Before making a final decision,
He keeps track of the number of customers who buy magazines on a given day. In a
Typical day his store has 280 customers. Would it be unusual for 28 customers to
Purchase magazines?

• A) No, because it is close to the average number expected.
• B) No, because it represents 10% of the customers who come to the store on a typical day.
• C) Yes, because it is more than three standard deviations above the mean of the sampling distribution.
• D) Yes, because it is two standard deviations below the mean of the sampling distribution.
• E) No, because it is only 5% higher than the mean of the sampling distribution.

Understand the implications of tying arrangements, exclusive dealing, and other similar practices under competition laws.

Describe the role of the Federal Trade Commission (FTC) in regulating advertising and promoting fair business practices.

Explain how international treaties and protocols, like the Madrid Protocol, facilitate trademark protection globally.

Grasp the legal mechanisms available for companies to enforce their trademark rights and prevent dilution.

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Definitions:

Accumulated Depreciation

The total amount of an asset's cost that has been allocated as depreciation expense over its useful life, reducing its book value on the balance sheet.

Asset

Tangible or intangible items of value owned or controlled by a person or company, capable of producing future economic benefits.

Straight-Line Depreciation

Straight-line depreciation is a method of allocating the cost of an asset evenly across its useful life.