A Major Department Store Chain Is Interested in Estimating the Average

question 119

Multiple Choice

A major department store chain is interested in estimating the average amount its credit card customers spent. Fifteen credit card accounts were randomly sampled and analyzed with the following results: = $50.50 and = 400. Assuming the distribution of the amount spent is approximately normal, what is the shape of the sampling distribution of the sample mean that will be used to create the desired confidence interval for ?

• A) approximately normal with a mean of $50.50
• B) a standard normal distribution
• C) a t distribution with 15 degrees of freedom
• D) a t distribution with 14 degrees of freedom

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Definitions:

Bystander Effect

The finding that people are less likely to offer help when they are in a group than when they are alone.

Pluralistic Ignorance

A psychological state where individuals mistakenly believe their thoughts, feelings, or behaviors are different from those of the group, often due to a lack of open communication.

Bystander Effect

A social psychological theory that suggests that individuals are less likely to offer help to a victim when other people are present, often due to a diffusion of responsibility.

Diffusion of Responsibility

The phenomenon where individuals in a group are less likely to take action or feel accountable, assuming that others will do so.