A Company Has Determined That the Mean Number of Days

question 25

Multiple Choice

A company has determined that the mean number of days it takes to collect on its accounts receivable is 36 with a standard deviation of 11 days. The company plans to select a random sample of n = 12 accounts and compute the sample mean. Which of the following statements holds true in this situation?

• A) There is no way to determine what the mean of the sampling distribution is without knowing the specific shape of the population.
• B) The sampling distribution will have the same distribution as the population, provided that the population is not normally distributed.
• C) The sampling error will be larger than if they had sampled n = 64 accounts.
• D) The sampling distribution may actually be approximately normally distributed depending on what the population distribution is.

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