A major retail clothing store is interested in estimating the difference in mean monthly purchases by customers who use the store's in-house credit card versus using a Visa,Mastercard,or one of the other major credit cards.To do this,it has randomly selected a sample of customers who have made one or more purchases with each of the types of credit cards.The following represents the results of the sampling: Given this information,which of the following statements is true?
A)If either of the sample sizes is increased,the resulting confidence interval will have a smaller margin of error.
B)If the confidence level were changed from 95 percent to 90 percent,the margin of error in the estimate would be reduced.
C)Neither A nor B are true.
D)Both A and B are true.

Question

A major retail clothing store is interested in estimating the difference in mean monthly purchases by customers who use the store's in-house credit card versus using a Visa,Mastercard,or one of the other major credit cards.To do this,it has randomly selected a sample of customers who have made one or more purchases with each of the types of credit cards.The following represents the results of the sampling:  Given this information,which of the following statements is true?
A)If either of the sample sizes is increased,the resulting confidence interval will have a smaller margin of error. 
B)If the confidence level were changed from 95 percent to 90 percent,the margin of error in the estimate would be reduced. 
C)Neither A nor B are true. 
D)Both A and B are true.

Quizplus · Accepted Answer

The Answer of A major retail clothing store is interested in estimating the difference in mean monthly purchases by customers who use the store's in-house credit card versus using a Visa,Mastercard,or one of the other major credit cards.To do this,it has randomly selected a sample of customers who have made one or more purchases with each of the types of credit cards.The following represents the results of the sampling:  Given this information,which of the following statements is true?
A)If either of the sample sizes is increased,the resulting confidence interval will have a smaller margin of error. 
B)If the confidence level were changed from 95 percent to 90 percent,the margin of error in the estimate would be reduced. 
C)Neither A nor B are true. 
D)Both A and B are true.

A Major Retail Clothing Store Is Interested in Estimating the Difference