A Major Retail Clothing Store Is Interested in Estimating the Difference

question 84

Multiple Choice

A major retail clothing store is interested in estimating the difference in mean monthly purchases by customers who use the store's in-house credit card versus using a Visa, Mastercard, or one of the other major credit cards. To do this, it has randomly selected a sample of customers who have made one or more purchases with each of the types of credit cards. The following represents the results of the sampling: Given this information, which of the following statements is true?

• A) If either of the sample sizes is increased, the resulting confidence interval will have a smaller margin of error.
• B) If the confidence level were changed from 95 percent to 90 percent, the margin of error in the estimate would be reduced.
• C) Neither A nor B are true.
• D) Both A and B are true.

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Definitions:

Understates Age

The act of deliberately reporting one's age as younger than it truly is, often for personal gain or to meet specific requirements.

Workers' Compensation Insurance

Insurance that provides wage replacement and medical benefits to employees injured in the course of employment.

General Liability Insurance

A type of insurance coverage that provides protection against claims of bodily injury, property damage, and personal and advertising injury that a business could face.

Trade Fixture Installer

A professional who installs equipment or machinery, which is necessary for a business and may legally be removed by the tenant at the end of a lease.