A Random Sample of 40 Online Retailers Is Selected to Estimate

question 41

Multiple Choice

A random sample of 40 online retailers is selected to estimate the average price of a particular item.The average price in the sample is $1.38.Suppose you build a 99% confidence interval estimate of the average price of the item for the population of online retailers represented here.Suppose further that the interval turns out to be $1.38 ± $.20.How would you interpret your result?

• A)The price of the item for 99% of all online retailers who sell the item will be between $1.18 and $1.58.
• B)The price of the item for 99% of the online retailers in the sample is between $1.18 and $1.58.
• C)We can be 99% confident that all online retailers who sell the item charge between $1.18 and $1.58 for the item.
• D)We can be 99% confident that the interval $1.29 to $1.47 contains the average price of the item for the population of online retailers who sell the item.
• E)We can be 99% confident that the interval $1.29 to $1.47 contains the average price of the item for the sample of online retailers we sampled.

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Definitions:

Perfect Tender Rule

A legal principle under the Uniform Commercial Code that requires sellers to deliver goods to buyers exactly as specified in their contract, without any deviations.

Tender Of Performance

An offer by one party involved in a contract to perform their obligation, demonstrating readiness to fulfill the terms of the contract.

C.O.D. Shipment

Delivery method where payment is collected at the time of delivery rather than in advance.

Acceptance Of Goods

The act of a buyer signifying approval of goods received, implying that the goods meet contractual specifications and terms.