Question
Big Bazar, a chain of 130 shopping malls has been bought out by another larger nationwide supermarket chain. Before the deal is finalized, the larger
Big Bazar, a chain of 130 shopping malls has been bought out by
another larger nationwide supermarket chain.
Before the deal is
finalized, the larger chain wants to have some assurance that Big
Bazar will be consistent money maker.
The larger chain has decided to
look at the financial records of 25 of the Big Bazar outlets.
Big Bazar
claims that each outlet's profits have an approximately normal
distribution with the same mean and a standard deviation of Rs. 40
million. If the Big Bazar management is correct, then what is the
probability that the sample mean for 25 outlets will fall within Rs.30
million of the actual mean.
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