Use the following information to answer the question. Suppose the manager of a large high-end jewelry store wants to
estimate the amount spent by customers during the holiday season. She took a random sample of customers and recorded the
amount they spent. A histogram of the data shows that the data is strongly left-skewed. The figures below show the
confidence intervals for the mean amount spent using (A) raw (untransformed) data, and (B) log-transformed data, which
showed a more normally distributed data set. Use this information to answer the question.

\begin{array}{l}\begin{array} { | l c c c c c | } \hline { \text { (A) One-Sample T: Purch } } \\\hline \text { Variable } & \mathrm { N } & \text { Mean } & \text { StDev } & \text { SE Mean } & 95 \% \text { CI } \\\hline \text { Purch } & 15 & 223.5 & 100.4 & 26.0 & ( 167.9,279.1 ) \\\hline\end{array}\\\\\begin{array} { | l c c c c c | } \hline { \text { (B) One-Sample T: LogPurch } } \\\hline \text { Variable } & \text { N } & \text { Mean } & \text { StDev } & \text { SE Mean } & 95 \% \text { CI } \\\hline \text { LogPurch } & 15 & 2.311 & 0.236 & 0.101 & ( 2.2,2.4 ) \\\hline\end{array}\end{array}

-Choose the statement that explains which confidence interval is likely to be a more precise estimate of amount spent and why.
A) The confidence interval for the geometric mean is more precise because the distribution of the log-transformed data is more symmetric.
B) The confidence interval for the untransformed data is more precise because the values are in
Actual dollars which is more meaningful.
C) The confidence interval for the untransformed data is more precise because it is strongly
Left-skewed and the confidence interval gives a wider interval.
D) None of these.

You Are Presented with Data from Two Independent Samples

Multiple Choice

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