In an Examination of Purchasing Patterns of Shoppers,a Sample of 16

question 105

Multiple Choice

In an examination of purchasing patterns of shoppers,a sample of 16 shoppers revealed that they spent,on average,$54 per hour of shopping.Based on previous years,the population standard deviation is thought to be $21 per hour of shopping.Assuming that the amount spent per hour of shopping is normally distributed,find a 90% confidence interval for the mean amount.

• A) [$45.3637,$62.6363]
• B) [$47.2695,$60.7305]
• C) [$51.8409,$56.1591]
• D) [$52.3174,$55.6826]

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Definitions:

Income Statement

A report showing the earnings, expenses, and net income of a business during a particular period, reflecting its financial performance.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to assess investment value.

Semiannual Interest

Interest that is calculated and paid twice a year, often associated with bonds or loans.

Effective Rate

The actual interest rate that a borrower pays or earns, taking into account the compounding of interest.