Answered: The credit manager of a large…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

The credit manager of a large department store claims that the mean balance for the store’s charge account customers is R3,280. An independent auditor selects a random sample of 18 accounts and finds a mean balance of R4,090.64 and a standard deviation of R1,470. If the manager’s claim is not supported by these data, the auditor intends to examine all charge account balances. If the population of account balances is assumed to be approximately normally distributed, what action should the auditor take? (Remember to use the 4-step process.)

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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