Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A market research firm supplies manufacturers with estimates of the retail sales of their products from samples of retail stores. Marketing managers are prone to

A market research firm supplies manufacturers with estimates of the retail sales of their products from samples of retail stores. Marketing managers are prone to look at the estimate and ignore sampling error. An SRS of 31 stores this year shows mean sales of 79 units of a small appliance, with a standard deviation of 14.6 units. During the same point in time last year, an SRS of 18 stores had mean sales of 91.41units, with standard deviation 11.9units. A decrease from 91.41 to 79 is a drop of about 16%.

a. Construct a 99% confidence interval estimate of the difference 12, where1 is the mean of this year's sales and2is the mean of last year's sales.

b. What is the margin of error?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction to the Mathematics of financial Derivatives

Authors: Salih N. Neftci

2nd Edition

978-0125153928, 9780080478647, 125153929, 978-0123846822

More Books

Students also viewed these Mathematics questions