A Major Department Store Chain Is Interested in Estimating the Mean

question 133

Short Answer

A major department store chain is interested in estimating the mean amount its credit card customers spent on their first visit to the chain's new store in the mall. Fifteen credit card accounts were
Randomly sampled and analyzed with the following results: $\bar { X } = \$ 50.50 \text { and } S = 20$ . Construct a
95% confidence interval for the mean amount its credit card customers spent on their first visit to the
Chain's new store in the mall assuming that the amount spent follows a normal distribution. a) $\$ 50.50 \pm \$ 9.09$
b) $\$ 50.50 \pm \$ 10.12$
c) $\$ 50.50 \pm \$ 11.00$
d) $\$ 50.50 \pm \$ 11.08$

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Definitions:

Marginal Cost

Marginal cost is the change in total production cost that comes from making or producing one additional unit of a good or service.

Public Good

A product or service that is non-excludable and non-rivalrous, meaning it can be used by many people without depleting the resource or preventing others from using it.

Demand-Side Market Failure

A situation where the demand curve does not reflect consumers' full willingness to pay for a good or service, often due to externalities or public goods.

Paradox Of Voting

A situation where the rational choice for an individual is not to vote because their single vote rarely affects the outcome, yet if everyone follows this logic, it undermines the democratic process.