1. Do you want to own your own candy store? With some interest in running your own business and a

decent credit rating, you can probably get a bank loan on startup costs for franchises such as Candy

Express, The Fudge Company, Karmel Corn, and Rocky Mountain Chocolate Factory. Startup costs (in

thousands of dollars) from a random sample of candy stores in the Chicago area are given below:

95 173 129 95 75 94 116 100 85

a) Find the sample mean, x1, and sample standard deviation, s1, for the data above. You may use

Google Sheets, the TI-84 Calculator, or hand computation with a formula.

b) Find a 95% confidence interval for the population average startup costs for candy store

franchises. Assume the population of startup costs is approximately normal. Show all work that

leads to your answer.

c) You speculate that opening a candy store franchise is significantly cheaper (at the 5% level) in

the Kansas City area versus the Chicago area. Suppose you take a sample of the startup costs

from 8 franchises in the Kansas City metro. The mean of this sample is x2 89.3 thousand

dollars with a sample standard deviation of s2 15.2 thousand dollars. Do the data support

your claim? Use a hypothesis test to check the claim and show all work that leads to your

conclusion.