A random sample of 100,000 credit sales in a department store showed an average sale of $87.25. From past data, it is known that the standard deviation of the population is $20.00. Determine the standard error of the mean.
A) .0632
B) .0002
C) 20.00
D) .0141

Question

Quizplus · Accepted Answer

The standard error of the mean is calculated using the formula: SE = σ / √n, where σ is the standard deviation and n is the sample size. Here, SE = 20 / √100,000 = 0.0632.

A Random Sample of 100,000 Credit Sales in a Department