You Want to Estimate the Average Gas Price in Your

question 1

Multiple Choice

You want to estimate the average gas price in your city for a litre of regular unleaded gasoline.From your sample of 15 gas stations,you calculate a 95% confidence interval of ($1.34,$1.40)

• A)You are 95% sure that the average price for a litre of regular unleaded gasoline in your city is between $1.34 and $1.40.
• B)You are 95% confident that the average price for a litre of regular unleaded gasoline in the country is within $0.03 of $1.37.
• C)You are 95% sure that gas stations in this sample have average costs between $1.34 and $1.40.
• D)95% of all samples of gas stations will have average costs between $1.34 and $1.40.
• E)If you took many samples of gas stations in your city,about 95% of them would produce this confidence interval.

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Definitions:

Vendor Managed Inventory (VMI)

A supply chain initiative where the supplier assumes the responsibility of managing inventory levels for the customer.

Outsourcing

The business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff.

Holding Cost Rate

The percentage of the value of inventory held over a certain period of time as costs, including storage, insurance, and depreciation.

Economical

Characterized by efficiency and avoidance of waste, referring to the cost-effective allocation and use of resources.