A Company Has Determined That the Mean Number of Days

question 25

Multiple Choice

A company has determined that the mean number of days it takes to collect on its accounts receivable is 36 with a standard deviation of 11 days. The company plans to select a random sample of n = 12 accounts and compute the sample mean. Which of the following statements holds true in this situation?

• A) There is no way to determine what the mean of the sampling distribution is without knowing the specific shape of the population.
• B) The sampling distribution will have the same distribution as the population, provided that the population is not normally distributed.
• C) The sampling error will be larger than if they had sampled n = 64 accounts.
• D) The sampling distribution may actually be approximately normally distributed depending on what the population distribution is.

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Definitions:

Management Process

The systematic approach involving planning, organizing, leading, and controlling to achieve organizational goals.

Leading

Involves influencing and motivating team members to accomplish organizational objectives.

Planning

The process of setting goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate activities.

Analytical Competency

The ability to evaluate and analyze information to make actual decisions and solve real problems.