A Sample of Holiday Shoppers Is Taken Randomly from a Local

question 5

Essay

A sample of holiday shoppers is taken randomly from a local mall. Forty-nine shoppers were selected and asked what their average spending on gifts would be during the entire holiday season. The point estimate of the population mean was calculated as $550 and the sample standard deviation was calculated as $92.
A) Construct a 95% confidence interval of the population mean spending.
B) Explain how the central limit theorem is used in constructing this interval.

• A) Construct a 95% confidence interval of the population mean spending.
• B) Explain how the central limit theorem is used in constructing this interval.

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Definitions:

Warranty Expense

The cost that a company anticipates or incurs to repair, replace, or compensate for a faulty product under warranty.

Warranty Repairs

Services offered for free by manufacturers or sellers to fix defects or issues in sold products within a specified period.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period, illustrating the company's financial performance.

Sales Units

The quantity of items or services sold by a business within a specific period.