A marketing researcher wants to estimate the mean amount spent (S) on Amazon. com by Amazon Prime member shoppers. Suppose a random sample of 100 Amazon Prime member shoppers who recently made a purchase on Amazon. com yielded a mean of $1,500. a. Suppose the standard deviation of the amount spent ($) on Amazon. com is $200. Construct a 95% confidence interval estimate for the mean spending for all Amazon Prime member shoppers.
b. Suppose the standard deviation of the sample of 100 Amazon Prime member shoppers is $200. Construct a 95% confidence interval estimate for the mean spending for all Amazon Prime member shoppers.

The answer is below

Explanation:

a)

Given that mean (μ) = $1500, standard deviation (σ) = $200, sample size (n) = 100

confidence (C) = 95% = 0.95

α = 1 -  C = 1 - 0.95 = 0.05

α/2 = 0.05 / 2 = 0.025

The z score that corresponds with 0.475 (0.5 - 0.025) is 1.96. Therefore the margin of error (E) is:

The confidence interval = (μ ± E) = (1500 ± 39.2) = (1500 - 39.2, 1500 + 39.2) = (1460.8, 1539.2)

The confidence interval is between $1460.8 and $1539.2.

b) Given that mean (μ) = $1500, standard deviation for 100 samples =  σ /√n = $200,

confidence (C) = 95% = 0.95

The confidence interval = (μ ± E) = (1500 ± 392) = (1500 - 392, 1500 + 392) = (1108, 1892)

The confidence interval is between $1108 and $1892.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.