Jessica Salas, President of Salas Products, is reviewing the warranty policy for her company's new model of automobile batteries.Life tests performed on a sample of 100 batteries indicated an average life of seven years under normal usage.Jessica recommended a six-year warranty period for the new model.This is an example of _____________.
A)descriptive statistics
B)executive forecasting
C)population derivation
D)sample persuasion
E)inferential statistics

Question

Quizplus · Accepted Answer

Jessica is using data from a sample (the life tests on 100 batteries) to make a decision about the warranty period for all batteries of the new model. This process of using sample data to make decisions or predictions about a larger group (the population) is an example of inferential statistics.

Jessica Salas, President of Salas Products, Is Reviewing the Warranty