A Cost Accountant Wished to Establish the Average Amount $\mu$ ,Spent by Executives Per Day on Travel and Lodging

question 47

Short Answer

A cost accountant wished to establish the average amount, $\mu$ ,spent by executives per day on travel and lodging.Then a comparison,between the average and the amount turned in to be reimbursed,will be made and unreasonably high or low expense amounts audited.A random sample of 50 executive expense receipts is taken.The average in the sample was $208.From a similar survey the standard deviation of the amounts is approximately $\text { σ }$
= $29.The accountant prepares a 90-percent confidence level for $\mu$ .What is its maximum error?

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Definitions:

Diffusion

The process where particles move from an area of higher concentration to an area of lower concentration, used metaphorically in various fields to describe the spread of information or technology.

Lifespan Perspective

An approach in psychology that examines human development from birth through old age, considering biological, emotional, cognitive, and social changes.

Neo-Freudian

A term referring to psychologists who adopted and adapted Freud's theories, while also introducing new concepts and diverging from some of his ideas.

Gerontologists

Specialists who study aging and the various aspects affecting older adults, including the biological, psychological, and social changes.