Sales from a Chain of Computer Stores Are Normally Distributed

question 32

Multiple Choice

Sales from a chain of computer stores are normally distributed, with an average monthly sales volume of $280,560.Estimating the amount of monthly variability in sales is of interest to help anticipate normal income fluctuations.A random sample of 8 months' sales data yields a standard deviation of $10,423.What is a 98% confidence interval for the standard deviation of monthly sales volume?

• A) ($172,694.71, $666,866.84)
• B) ($6152.47, $21,491.21)
• C) ($6123.96, $27,725.40)
• D) ($6415.73, $24,774.57)

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Definitions:

Compounded Monthly

Interest calculation method where interest is added to the principal balance monthly, leading to interest on interest.

Monthly Investments

Regular investments made on a monthly basis, often as part of a disciplined strategy to accumulate wealth over time.

Investment

The allocation of resources with the expectation of generating an income or profit, such as stocks, bonds, or real estate.

Compounded Quarterly

Interest calculation method where the interest is added to the principal four times a year.