In a Recent Audit Report, an Accounting Firm Stated That

question 14

Essay

In a recent audit report, an accounting firm stated that the mean sale per customer for the client was estimated to be between $14.50 and $28.50. Further, this was based on a random sample of 100 customers and was computed using 95 percent confidence. Provide a correct interpretation of this confidence interval estimate.

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Definitions:

Behavioral Economics

An area within economics analyzing how various psychological, emotional, cognitive, cultural, and social elements affect the decision-making processes in economics of both individuals and organizations.

Net Change

The difference in an entity's value between two points in time, commonly used in reference to stock prices or financial performance.

Utility

The want-satisfying power of a good or service; the satisfaction or pleasure a consumer obtains from the consumption of a good or service (or from the consumption of a collection of goods and services).

Behavioral Economics

A field of economics that studies how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.