A Major Electronics Store Chain Is Interested in Estimating the Average

question 5

Multiple Choice

A major electronics store chain is interested in estimating the average amount its credit card customers spent on their first visit to the chain's new store in the mall. Fifteen credit card accounts were randomly sampled and analyzed with the following results: = $50.50 and s ² = 400. A 95% confidence interval for the average amount the credit card customers spent on their first visit to the chain's new store in the mall is:

• A)$50.50 ± $9.09.
• B)$50.50 ± $10.12.
• C)$50.50 ± $11.08.
• D)None of these choices.

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Definitions:

Supplies

Items used in the operation of a business, not directly tied to the product being sold but necessary for its production or administration.

Flexible Budget

A budget that adjusts or varies with changes in the volume of activity, revenue, or other factors influencing budgetary needs.

Refurbishment

The process of cleaning, decorating, and re-equipping to make something look new or to bring it back to excellent condition.

Budgeting

The process of creating a plan to spend your resources, outlining an organization's financial and operational goals.