Parking at a Large University Can Be Extremely Difficult at Times

question 40

Multiple Choice

Parking at a large university can be extremely difficult at times. One particular university is trying to determine the location of a new parking garage. As part of their research, officials are interested in estimating the average parking time of students from within the various colleges on campus. A survey of 338 College of Business (COBA) students yields the following descriptive information regarding the length of time (in minutes) it took them to find a parking spot. Note that the "Lo 95%" and "Up 95%" refer to the endpoints of the desired confidence interval. $$\begin{array} { l l c c c c r } \text { Variable } & \mathrm { N } & \text { Lo 95\% CI } & \text { Mean } & { \text { Up 95\% CI } } & \text { SD } \\\text { Parking Time } & 338 & 9.1944 & 10.466 & 11.738 & 11.885\end{array}$$ Give a practical interpretation for the 95% confidence interval given above.

• A) 95% of the COBA students had parking times of 10.466 minutes.
• B) 95% of the COBA students had parking times that fell between 9.19 and 11.74 minutes.
• C) We are 95% confident that the average parking time of all COBA students falls between 9.19 and 11.74 minutes.
• D) We are 95% confident that the average parking time of the 338 COBA students surveyed falls between 9.19 and 11.74 minutes.

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Definitions:

Budgeted Overhead Costs

The anticipated costs associated with running operations that are planned for in advance during the budgeting process.

Volume Variance

A measure used in budgeting and accounting to analyze the difference between actual and budgeted sales volumes, affecting the total revenue.

Standard Hours

The predefined amount of time expected to complete a task or project under normal conditions.

Normal Capacity

The average level of operational output or activity that a company can sustain over a period, considering usual business conditions.