Crownfashions

question 106

Multiple Choice

Crownfashions.com wants to estimate the average time that visitors to its website spend browsing the site.In a random sample of 49 visits this week, average browsing time is 13.6 minutes.Assume you know the population standard deviation is 5.2 minutes.Construct an 80% confidence interval estimate of average browsing time for the population of crownfashion.com visitors this week.Report the upper bound for your interval.

• A)15.96
• B)18.21
• C)16.13
• D)15.27
• E)14.55

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Definitions:

Straight-Line Depreciation

An accounting method that allocates the cost of a tangible asset evenly over its useful life.

Variable Cost

Outlays that shift in alignment with the quantity of output generated.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument back to their present value, thus reflecting the cost of capital.

Initial Cost

The upfront expense incurred to purchase an asset or start a project, including all relevant expenses.