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:

Social Pressure

The influence that is exerted by society or a social group on individuals or its members to conform to expected norms and behaviors.

Ethical Awareness

The ability to recognize ethical issues and dilemmas in one's professional and personal life, understanding both the implications and possible responses to such challenges.

Competition

The rivalry among businesses or individuals for resources, markets, and customers, aiming to achieve superior performance.

Cut Corners

To undertake actions in the easiest, quickest, or cheapest way, often by skipping necessary steps or violating rules.