An Auditor for a Large Oil Corporation Has Taken a Random

question 59

Multiple Choice

An auditor for a large oil corporation has taken a random sample of monthly credit card charges for 32 individual (non-corporate) accounts.She found a mean of $81.76.Assume that the population standard deviation is 48.2.A 98% confidence interval estimate for the population mean of individual credit card charges would be:

• A) 81.76 \(\pm\) 19.89.
• B) 81.76 \(\pm\) 16.72.
• C) 81.76 \(\pm\) 112.94.
• D) 81.76 \(\pm\) 22.0.
• E) 81.76 \(\pm\) 2.33.

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Definitions:

Probable Loss

An anticipated financial loss that is likely to occur because of existing conditions or events.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and stockholders' equity at a specific point in time.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health.

Wages and Salaries

Wages and Salaries refer to the regular compensation paid to employees for their labor or services in executing their job responsibilities.