Question

The average customer at a convenience store spends $14. You are going to keep track of how much is spent by the customers. Which of the following is most likely to occur?

Group of answer choices

The next 10 customers spend an average of between $10 and $18.

The next 100 customers spend an average of between $10 and $18.

The next 10 customers spend an average of exactly $14.

The next 100 customers spend an average of exactly $14.

Answer 1

Hello

Your required answer is option B : The next 100 customers spend an average of between $10 and $18.

In continuous distributions, it is always more probable for a variable to fall in an interval, rather than just a point. Hence, this eliminates option C and d.

Now, we know that, in sampling distribution, we calculate standard error by dividing the square root of n, hence, the more the n, the larger we are confident of the true point estimate falling in an range and hence within the given interval and hence, we will be more confident when n is 100,rather than 10. Hence, the answer is option B.

Thanks

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