A Survey of 144 Retail Stores Revealed That the Average

question 111

Multiple Choice

A survey of 144 retail stores revealed that the average price of a DVD was $375 with a standard
Error of $20. What is the 95% confidence interval to estimate the true cost of the DVD?

• A) $323.40 to $426.60
• B) $328.40 to $421.60
• C) $335.00 to $415.00
• D) $335.80 to $414.20

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Definitions:

Price Variance

The difference between the actual cost and the standard cost of an item, often analyzed to manage and control spending effectively.

Management

The process of directing and controlling a group or organization to achieve its goals through the efficient use of resources.

Industry Standards

Refers to established norms and requirements that guide production and service processes within a specific field to ensure quality, safety, and efficiency.

Normal Conditions

The usual or expected state of things in a given context, such as typical operating conditions in a production environment.