A Random Sample of 100 Credit Sales in a Department

question 42

Short Answer

A random sample of 100 credit sales in a department store showed an average sale of $120.00. From past data, it is known that the standard deviation of the population is $40.00.
a.Determine the standard error of the mean.
b.With a 0.95 probability, determine the margin of error.
c.What is the 95% confidence interval of the population mean?

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Definitions:

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders.

Contributed Capital

The capital that shareholders contribute to a company beyond the par value of the shares they purchase.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, typically with predetermined dividend payments.

Dividends

Dividends are distributions of a portion of a company's earnings decided by the board of directors to its shareholders.