Compute the Standard Error of a Sampling Distribution

question 3

Multiple Choice

Compute the standard error of a sampling distribution.
-Grandma Gertrude's Chocolates, a family owned business, has an opportunity to
Supply its product for distribution through a large coffee house chain. However, the
Coffee house chain has certain specifications regarding cacao content as it wishes to
Advertise the health benefits (antioxidants) of the chocolate products it sells. Suppose
Quality control inspectors at the coffee house chain take a sample of 100 pieces of this
Chocolate product from an incoming shipment. They find a sample average of 60% cacao
With a sample standard deviation of 8%. What is the standard error of the sampling
Distribution of the sample mean?

• A) 8%
• B) 0.8%
• C) 6%
• D) 0.6%
• E) 0.08%

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Definitions:

Trade Deficit

An economic condition that occurs when a country imports more goods and services than it exports.

Appreciate

In economic terms, an increase in the value of an asset or currency.

International Value

The worth or significance of goods, services, assets, or currencies when evaluated on a global scale or in more than one country.

Foreign Exchange Market

An international exchange system where national currencies are swapped against each other.