How Do You Determine Whether to Use the Z or T

question 52

Essay

How do you determine whether to use the z or t distribution in computing the margin of $\text { error, } \mathrm { E } = \mathrm { z } _ { \alpha / 2 } \cdot \frac { \sigma } { \sqrt { \mathrm { n } } } \text { or } \mathrm { E } = \mathrm { t } _ { \alpha / 2 } \cdot \frac { \mathrm { s } } { \sqrt { \mathrm { n } } } \text { ? }$

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Definitions:

Cost-Plus Approach

A pricing strategy where the selling price is determined by adding a specific markup to the cost of producing or purchasing the product.

Differential Profit

The change in profit resulting from choosing one option over another in decision-making processes.

Fixed Expenses

Costs that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Variable Factory Overhead

Expenses in a factory that vary with the level of production output, such as utility costs and materials.