Provide an Appropriate Response

question 44

Multiple Choice

Provide an appropriate response.
-The amount of money collected by a snack bar at a large university has been recorded daily for the past five years. Records indicate that the mean daily amount collected is $1950 and the standard deviation is $500. The distribution is skewed to the right due to several high volume days (including football game days) . Suppose that 100 days were randomly selected from the five years and the average amount collected from those days was recorded. Which of the following describes the sampling distribution of the sample mean

• A) normally distributed with a mean of $1950 and a standard deviation of $50
• B) normally distributed with a mean of $1950 and a standard deviation of $500
• C) normally distributed with a mean of $195 and a standard deviation of $50
• D) skewed to the right with a mean of $1950 and a standard deviation of $500

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Definitions:

Disaster Relief

Assistance provided to individuals, businesses, and communities affected by natural or human-made disasters, aiming to help them recover.

Crop Insurance

Insurance that farmers can purchase that will pay out if crop selling prices or crop revenues fall below predetermined values.

Moral Hazard

A situation where one party takes greater risks because they do not have to bear the full consequences of their actions.

Subsidized

Financial support provided by a government or organization to reduce the cost of producing goods or services, often to encourage consumption or investment.