A Survey by American Express Spending Reported That the Average

Multiple Choice

A survey by American Express Spending reported that the average amount spent on a wedding gift for a close family member is $166. A random sample of 45 people who purchased wedding gifts for a close family member spent an average of $160.50. Assume that the population standard deviation is $38. Use a 95% confidence interval to test the validity of this report and choose the one statement that is correct.

A) Because this confidence interval does not include $166, the report by American Express Spending is not validated.
B) Because this confidence interval does include $166, the report by American Express Spending is not validated.
C) Because this confidence interval does include $166, the report by American Express Spending is validated.
D) Because this confidence interval does not include $166, the report by American Express Spending is validated.