A Major Department Store Chain Is Interested in Estimating the Average

question 62

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.
-Assuming the distribution of the amount spent on their first visit is approximately normal,what is the shape of the sampling distribution of the sample mean that will be used to create the desired confidence interval for $\mu$ ?

• A) A t distribution with 15 degrees of freedom.
• B) A standard normal distribution.
• C) Approximately normal with a mean of $50.50.
• D) A t distribution with 14 degrees of freedom.

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Definitions:

Escrow

A legal arrangement in which a third party temporarily holds money, property, or documents until certain conditions are fulfilled.

Real Estate

Property consisting of land or buildings, and the natural resources of the land including uncultivated flora and fauna, farmed crops and livestock, water, and mineral deposits.

Mortgage Debt

The amount of money borrowed to purchase a property, which the borrower is obligated to repay with interest to the lender, typically secured by the property itself.

Equity of Redemption

The right of a borrower to reclaim their property pledged as collateral upon full repayment of the debt prior to foreclosure.