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Question
An online auction website allows sellers to place a reserve on their items up for auction. Bids on an item with a reserve must exceed a predetermined price before the seller commits to the transaction. In a sample of 2,617 auctions, the mean reserve was $112 with a standard deviation of $560.
Find an approximate 95% confidence interval for the true mean reserve price, µ.
A. 116 ± 18.46
B. 110 ± 20.61
C. 112 ± 21.46
D. 112 ± 25.56
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