Eugene Gates, Marketing Director of Mansfield Motors Manufacturers, Inc.'s Electrical Division, is leading a study to assess the relative importance of product features.An item on a survey questionnaire distributed to 100 of Mansfield's customers asked them to rate the importance of "ease of maintenance" on a scale of 1 to 10 (with 1 meaning "not important" and 10 meaning "highly important").His staff assembled the following statistics: If Eugene concludes that the average rate of "ease of maintenance" for all customers is 7.5, he is using ___.
A)a range estimate
B)a statistical parameter
C)a point estimate
D)an interval estimate
E)a guesstimate

Question

Eugene Gates, Marketing Director of Mansfield Motors Manufacturers, Inc.'s Electrical Division, is leading a study to assess the relative importance of product features.An item on a survey questionnaire distributed to 100 of Mansfield's customers asked them to rate the importance of "ease of maintenance" on a scale of 1 to 10 (with 1 meaning "not important" and 10 meaning "highly important").His staff assembled the following statistics:  If Eugene concludes that the average rate of "ease of maintenance" for all customers is 7.5, he is using ___.
A)a range estimate 
B)a statistical parameter 
C)a point estimate 
D)an interval estimate 
E)a guesstimate

Quizplus · Accepted Answer

Eugene is using a single value to estimate the average rate of "ease of maintenance" for all customers, which is a point estimate. He is not providing a range or an interval estimate, and he is using a statistical parameter (the sample mean) to make the estimate rather than a guesstimate.