Exhibit 8-3 The Manager of a Grocery Store Has Taken a Random

question 114

Multiple Choice

Exhibit 8-3
The manager of a grocery store has taken a random sample of 100 customers. The average length of time it took these 100 customers to check out was 3.0 minutes. It is known that the standard deviation of the population of checkout times is one minute.
-Refer to Exhibit 8-3. With a .95 probability, the sample mean will provide a margin of error of

• A)1.96
• B)0.10
• C)0.196
• D)1.64

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Definitions:

Investment Dollars

The amount of money committed to investments with the expectation of generating a future return.

Discount Rate

The interest rate used to discount future cash flows to their present value, reflecting the time value of money.

Annual Cost Savings

The reduction in total costs achieved on an annual basis through efficiency improvements, cost-cutting measures, or operational changes.

Investment Cost

The total amount of money spent on acquiring or investing in assets, including initial setup, purchasing, and any other related costs.