In an Effort to Estimate the Mean Dollars Spent Per

question 35

Multiple Choice

In an effort to estimate the mean dollars spent per visit by customers of a food store, the manager has selected a random sample of 100 cash register receipts. The mean of these was $45.67 with a sample standard deviation equal to $12.30. Assuming that he wants to develop a 90 percent confidence interval estimate, the upper limit of the confidence interval estimate is:

• A) about $2.02
• B) approximately $65.90
• C) about $47.69
• D) None of the above

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Definitions:

Marketable Securities

Financial instruments that can be easily converted into cash at a reasonable price in the short term.

Money Market

A segment of the financial market in which financial instruments with high liquidity and short maturities are traded.

Interest Rate Risk

The potential for investment losses due to changes in interest rates.

Marketable Securities Portfolio

This refers to a collection of liquid financial instruments that a company or individual holds, which can be quickly sold in the market to raise cash.