Exhibit 10-6 The Management of a Department Store Is Interested in Estimating

question 86

Multiple Choice

Exhibit 10-6
The management of a department store is interested in estimating the difference between the mean credit purchases of customers using the store's credit card versus those customers using a national major credit card. You are given the following information.
-Refer to Exhibit 10-6. A point estimate for the difference between the mean purchases of the users of the two credit cards is

• A)2
• B)18
• C)265
• D)15

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Definitions:

Frequency Distribution

A statistical tool that shows how often each different value in a set of data occurs.

Linear Regression Equation

The mathematical expression that represents the linear relationship between a dependent variable and one or more independent variables in linear regression.

Fahrenheit Degrees

A temperature scale where the boiling point of water is 212 degrees and the freezing point is 32 degrees.

Correlation Coefficient

Represented by r, it is a number between −1 and 1, inclusive, that is used to judge how closely a line fits the data.