In order to evaluate the reasonableness of a firm's stated total value of its parts inventory, an auditor randomly samples 50 of the total 400 parts in stock, prices each part, and reports the results shown below.
Part Price: $55 $34 $57 $52 $85 $100 $39 $76
Sample size 3 8 5 8 8 9 8 1
a. Give a point estimate of the mean value of the parts inventory. (round to the nearest cent)
b. Find the estimated standard error of the point estimate of part a. (round to nearest cent)
c. The auditor estimates the mean value of the parts to be in the interval $_____ to $_____ with 95% confidence. (round to nearest cent)
d. The firm reported a mean parts inventory value of $65. What does the confidence interval of part c suggest about the resonableness of the firm's reported figure? Options: Means nothing, reasonable value, not a resonable value.