A Company Has Determined That the Mean Number of Days

question 7

Multiple Choice

A company has determined that the mean number of days it takes to collect on its accounts receivable is 36, with a standard deviation of 11 days. The company plans to select a random sample of n = 12 accounts and compute the sample mean. Which of the following statements holds true in this situation?

• A) The sampling distribution may actually be approximately Normally distributed depending on what the population distribution is.
• B) The sampling distribution will always have the same distribution as the population.
• C) The sampling variability will be greater than if they had sampled n = 64 accounts.
• D) The sampling distribution will certainly be approximately Normally distributed in this case.
• E) The sampling distribution cannot be approximately Normally distributed in this case.

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Definitions:

Interdependence

The mutual reliance between individuals, groups, or organizations where each party depends on the others for resources, information, or support.

Problem-Solving

The process of identifying, assessing, and resolving issues in order to overcome obstacles or reach a desired outcome.

Assertiveness

The quality of being self-assured and confident without being aggressive.

Cooperativeness

Cooperativeness is a disposition or willingness to work together with others towards common goals or interests, often characterized by mutual support and teamwork.