Bubba's Burgers

During the past year Bubba's Burgers introduced a new dessert product into its Canadian market area. The product had already passed all the internal hurdles including focus groups and operational analysis, such as time it takes to make and equipment constraints. The next step was to see how well the product would be received in the marketplace. In particular, Bubba's Burgers' Vice President for Production, Stephanie Linwood, was interested in estimating the mean number of orders for this dessert per 1,000 customer transactions. A random sample of 142 stores throughout Canada was selected. Store managers tracked the number of dessert orders per 1,000 transactions during a two-week trial period. See the file Bubba's Burgers

1. Based on these sample data construct and interpret a 90% confidence interval estimate for the mean number of dessert orders per 1,000 orders.

2. Suppose that the Stephanie is not happy with the margin of error associated with the confidence interval estimate you found in question 1 and wants the margin of error to be no greater than +/-2 dessert orders per 1,000 customer orders. To meet this objective, how many more stores should be included in the sample? Alternatively, if Stephanie doesn't wish to increase the sample size, what other option is available to reduce the margin of error? Discuss the pros and cons of both approaches.

You need to answer the questions above in paragraph form as if you are writing to Stephanie Linwood.