Question

A department store chain is interested in estimating the mean amount its credit card customers spent on their first visit to the chain’s new store in the mall. 18 credit card accounts were randomly sampled and analyzed with the following results: X¯ = $40.50 and S = 15. Assuming the distribution of the amount spent on their first visit is normal, what is the shape of the sampling distribution of the sample mean that will be used to create the desired confidence interval for µ?

A) t distribution with 17 degrees of freedom

B) Approximately normal with a mean of $40.50

C)  standard normal distribution

D) t distribution with 15 degrees of freedom

Answer 1

Solution :

Here sample standard deviation is given and n < 30 so we use t

n = 18

df = 17

The shape of the sampling distribution of the sample mean that will be used to create

the desired confidence interval for µ is

A) t distribution with 17 degrees of freedom