According to USA Today, Customers Are Not Settling for Automobiles

question 33

Multiple Choice

According to USA Today, customers are not settling for automobiles straight off the production lines. As an example, those who purchase a $355,000 Rolls-Royce typically add $25,000 in accessories. One of the affordable automobiles to receive additions is BMW's Mini Cooper. A sample of 179 recent Mini purchasers yielded a sample mean of $5,000 above the $20,200 base sticker price. Suppose the cost of accessories purchased for all Mini Coopers has a standard deviation of $1,500. Determine the margin of error in estimating the average cost of accessories on Mini Coopers.

• A) 219.75
• B) 214.41
• C) 231.14
• D) 291.11

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Definitions:

Post-closing Trial Balance

A statement created after closing entries are made, listing all active accounts and their balances to ensure debits equal credits.

Asset Accounts

Accounts that represent tangible and intangible items of value owned by a business, which can include cash, receivables, inventory, equipment, and intellectual property.

Liability Accounts

Accounts on a balance sheet that represent obligations or debts of a company that are expected to be paid in the future.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was put into use, reflecting its decline in value over time.