The Dollar Value of Orders Placed Through a Particular Store

question 150

Multiple Choice

The dollar value of orders placed through a particular store catalog is found to be normally distributed with a standard deviation of $21.58.A sample of 30 orders averaged $81.25.What is the 90% confidence interval around this sample mean?

• A)$81.25 ± $21.58
• B)$81.25 ± $10.79
• C)$81.25 ± $12.15
• D)$81.25 ± $6.48

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Definitions:

Favorable Variance

Occurs when actual performance is better than expected, leading to lower costs or higher revenues than planned.

Budgeted Revenue

The projected income that a business or organization expects to generate within a specific period, often used for planning and performance evaluation.

Standard Costs

Predetermined costs assigned to goods and services, used as a benchmark for evaluating actual production costs.

Budgeted Performance

The planned or forecasted financial performance of a business or project, often including revenue, expenses, and profit targets.