A Major Department Store Chain Is Interested in Estimating the Average

question 58

Multiple Choice

A major department store chain is interested in estimating the average amount its credit card customers spent on their first visit to the chain's new store.Fifteen credit card accounts were randomly sampled and analysed with the following results: $\bar { X }$ = $50.50 and S = 20.
-Construct a 95% confidence interval for the average amount its credit card customers spent on their first visit to the chain's new store in the mall assuming that the amount spent follows a normal distribution.

• A) $50.50 ± $11.00
• B) $50.50 ± $10.12
• C) $50.50 ± $9.09
• D) $50.50 ± $11.08

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Definitions:

Book Value Per Share

A financial measure that represents a per share assessment of the minimum value of a company's equity.

Equipment On Credit

The acquisition of machinery or equipment for business operations where payment is made through financing or on a deferred payment plan instead of upfront cash.

Debt-To-Equity Ratio

A measure used to evaluate a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Long-Term Debt

Financial obligations of a company that are due more than one year in the future, often in the form of loans or bonds.