A Sample of Holiday Shoppers Is Taken Randomly from a Local

question 5

Essay

A sample of holiday shoppers is taken randomly from a local mall. Forty-nine shoppers were selected and asked what their average spending on gifts would be during the entire holiday season. The point estimate of the population mean was calculated as $550 and the sample standard deviation was calculated as $92.
A) Construct a 95% confidence interval of the population mean spending.
B) Explain how the central limit theorem is used in constructing this interval.

• A) Construct a 95% confidence interval of the population mean spending.
• B) Explain how the central limit theorem is used in constructing this interval.

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Definitions:

Average Variable Cost Curve

A graph that represents the variable costs of production divided by the quantity of output, illustrating how cost changes with changes in output.

U-Shaped

Describing a type of graph or relationship where the values fall, then rise, forming a shape similar to the letter "U".

Short-Run Cost Function

The relationship between the total cost and output when at least one factor of production is fixed.

Quasi-Fixed Costs

Expenses that are fixed over a certain range of production or time but can change if production or the time period changes significantly.