A Random Sample of 49 Lunch Customers Was Taken at a Restaurant

question 32

Essay

A random sample of 49 lunch customers was taken at a restaurant. The average amount of time the customers in the sample stayed in the restaurant was 45 minutes with a standard deviation of 14 minutes.
a.Compute the standard error of the mean.
b.With a .95 probability, what statement can be made about the size of the margin of error?
c.Construct a 95% confidence interval for the true average amount of time customers spent in the restaurant.
d.With a .95 probability, how large of a sample would have to be taken to provide a margin of error of 2.5 minutes or less?

Understand the basic principles of accounting and financial statements.

Calculate changes in owner's capital and understand factors affecting those changes.

Record transactions appropriately in journals and ledgers.

Understand the concept of debits and credits and the double-entry system.

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Definitions:

Uncovered Call

An uncovered call is an options strategy where the seller sells call options without owning the underlying securities, exposing the seller to unlimited risk.

Strike Price

The price at which a derivative contract can be exercised, specifically referring to the price at which the holder of an option can buy (call option) or sell (put option) the underlying asset.

Listed Options

Contracts traded on a stock exchange that give buyers the right, but not the obligation, to buy or sell a security at a specified price within a certain time period.

Post Margins

The practice of depositing collateral to cover potential losses in trading accounts, especially in futures and options markets.