Chicago Connection, a Local Pizza Company, Delivers Pizzas for Free

question 99

True/False

Chicago Connection, a local pizza company, delivers pizzas for free within the market area. The delivery drivers are paid $2.00 per delivery plus they get to keep any tips. To estimate the proportion of deliveries that result in a tip to the driver, a random sample of 64 deliveries was selected. Of these, 48 times a tip was received. Based on this information, and using a 95 percent confidence level, the margin of error for the estimate is approximately ±.1061.

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Definitions:

Revenues

Income generated from normal business operations and includes discounts and deductions for returned merchandise.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership stake of the owners.

Revenues

The total income generated from normal business operations and other activities over a specific time period.

Expenses

The costs incurred in the process of generating revenue, including operational, administrative, and sales costs.