Answer Happy

States that rely on sales tax for revenue to fund education, public safety, and other programs often end up with budget surpluses during economic growth periods (when people spend more on consumer goods) and budget deficits during recessions (when people spend less on consumer goods). 12 small retailers in a state with a growing economy were recently sampled. The sample showed a mean increase of $2540 in additional sales tax revenue collected per retailer compared to the previous quarter. The sample standard deviation is $436. Complete parts a through d below. a) What is the standard error of the mean increase in sales tax revenue collected? The standard error is $ 125.86. (Round to two decimal places as needed.) b) What happens to the accuracy of an estimate when an interval is constructed using a smaller sample size? The standard error and width of the interval increases, which means that the accuracy of the interval decreases. c) Find and interpret a 95% confidence interval. (Round to one decimal place as needed.)