The Following Data Represent a Random Sample of Bank Balances

question 167

Multiple Choice

The following data represent a random sample of bank balances for a population of checking account customers at a large eastern bank. Based on these data, what is the 95 percent confidence interval estimate for the true population mean?

• A) Approximately $1,069 ± $484.41
• B) About $839.40 to $1,298.60
• C) Approximately $1,069 ± 2.1098
• D) None of the above

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Definitions:

Variable Expenses

Costs that vary in direct proportion to changes in the level of production or sales volume, such as materials or sales commissions.

Fixed Expenses

Expenses that remain constant regardless of the amount of goods produced or sold in a brief timeframe, including lease payments, wages, and insurance premiums.

Annual Profit

The net earnings of a company over a one-year period, calculated as revenue minus expenses, taxes, and costs.

Margin of Safety

The difference between actual or expected sales and sales at the break-even point, indicating the risk margin for not reaching profit.