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

This is an example of using inferential statistics because Jessica is using the sample data (100 batteries) to make an inference about the population (all of the new model of batteries). She is using the average life of seven years to estimate the likely life of the entire population and then making a decision about the warranty period based on that estimate.

Jessica Salas,president of Salas Products,is Reviewing the Warranty Policy for Her