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**Please only Use Excel/Handwritten calculations for this** Do not use R Studio. The items for sale in many retail stores sometimes ring up at a

**Please only Use Excel/Handwritten calculations for this** Do not use R Studio.

The items for sale in many retail stores sometimes ring up at a different price at the cash register compared to the price marked on the shelf. This goes unnoticed by many consumers. But whether the mistakes are intentional or not, the retailers get checked by government inspectors (for overcharges only) and can potentially be fined for the mistakes if their error rate is high enough. The retailers also run the risk of receiving bad publicity through the press. As an example, in one such inspection: "during Walmart's second inspection, the price of a ceiling fan was off by $30. The shelf price listed the fan at $19.99, but it rang up as $49.97 at the register." For more, read: Inspector: One in 10 NC stores ring up wrong prices1. To avoid the fine and the public embarrassment that follows for being caught, each retailer will self-inspect their records. They typically use the same process as the government inspectors by selecting a random sample of items for cross-checking the register and the shelf prices. In a recent self-check, the store manager had her employees compare prices on 230 different items which were picked at random for cross-check. The employees recorded the shelf price and the price that appeared on the cash register. You can find these results in the MS Excel file titled "Price-Check". The government inspector will not fine companies that have an error rate of less than 2%.

Question 1 Based on the data in this study, what is the estimate of proportion of items that will ring up at higher prices and thus be counted as a violation? (Hint: Should your estimate be a single number or a range to provide appropriate background for managerial decision-making?) Question 2 Based on your answer for Question 1, if an inspector showed up today, would the store manager be 95% confident that the store will pass? Why, or why not? Question 3 If the manager wants to have a margin error of 0.5% (.005), then how many items need to be cross-checked?

Question 4 The manager doesn't believe she has the resources to do as many cross-checks to ensure a margin of error of 0.5%. She has noticed that in the items checked, some items are ringing up for less at the cash register, so technically, a customer could end up with a bill that is less than what they were expecting. She wonders if she would be able to defend her store against fines based on the average amount customers are being wrongly charged (either over- or undercharged). (Hint: for the purpose of this question, consider that items that ring up at correct prices essentially have the incorrect charge equal to zero. This is valuable data, and such items should be included in your calculation of the mean dollar amount of incorrect charges in Part (b)). a. Based on the collected sample data, what is the maximum overcharge for an item in this study? And what is the maximum undercharge for an item in this study? Insert answer here. b. Based on the collected sample data, what is the 95% confidence interval for the mean dollar amount of incorrect charges? Insert answer here. c. If the inspector's sample results in an error rate of 2.7% of items being overcharged, do you think showing the average error (accounting for both undercharges and overcharges) will help her avoid getting fined? Insert answer here. d. Should the store manager decides to do a larger study to be sure she can pass inspection? The fine for not passing an inspection is about $1,000, followed by a repeated inspection (as the recent news article tells us, "Walmart on New Hope Church Road in Raleigh, for example, failed three consecutive inspections, ringing up almost $5,000 in fines before finally passing." See Inspector: One in 10 NC stores ring up wrong prices). Please explain your answer.

Item Shelf Price Price at the Register
1 30,60 30,60
2 26,90 26,90
3 21,60 21,60
4 43,60 43,60
5 25,99 25,99
6 3,60 3,60
7 7,50 7,50
8 10,25 10,25
9 24,50 24,50
10 12,00 12,00
11 15,90 15,90
12 24,49 24,49
13 56,89 56,89
14 9,25 9,25
15 68,00 68,00
16 33,00 33,00
17 5,00 5,00
18 39,89 39,89
19 5,50 5,50
20 24,85 24,85
21 4,50 4,75
22 19,90 19,90
23 35,89 35,89
24 33,60 33,60
25 4,70 4,70
26 41,50 41,50
27 25,50 25,50
28 17,50 17,50
29 38,00 38,00
30 4,80 4,80
31 37,75 37,75
32 16,85 16,85
33 52,89 52,89
34 65,30 65,30
35 68,25 68,25
36 3,50 3,50
37 48,60 48,60
38 63,49 61,99
39 25,75 25,75
40 3,80 3,80
41 1,90 1,90
42 43,35 43,35
43 26,10 26,10
44 19,89 19,89
45 34,00 34,00
46 24,99 24,99
47 12,85 12,85
48 14,90 14,90
49 52,90 52,90
50 9,50 9,50
51 11,00 11,00
52 25,75 25,75
53 40,00 40,00
54 30,90 30,90
55 9,99 9,99
56 20,99 20,99
57 45,99 45,99
58 2,00 2,00
59 7,99 6,99
60 75,30 75,30
61 25,50 25,50
62 2,70 2,70
63 2,99 2,99
64 4,90 4,90
65 73,60 73,60
66 28,60 28,60
67 59,30 59,30
68 50,89 50,89
69 24,99 24,99
70 6,99 6,99
71 58,49 58,49
72 11,85 11,85
73 2,70 2,70
74 53,30 53,30
75 30,00 30,00
76 20,99 20,99
77 3,90 3,90
78 20,30 20,30
79 39,60 39,60
80 75,89 75,89
81 1,90 1,90
82 42,49 42,49
83 26,00 26,00
84 33,50 33,50
85 19,90 19,90
86 40,89 40,89
87 25,60 25,60
88 46,10 46,10
89 13,99 13,99
90 1,99 1,99
91 63,50 63,50
92 44,60 44,60
93 55,25 55,25
94 40,30 40,30
95 5,20 5,20
96 24,35 24,35
97 2,80 4,50
98 36,90 36,90
99 57,89 57,89
100 39,35 39,35
101 13,99 13,99
102 64,90 64,90
103 28,50 28,50
104 42,40 42,40
105 17,90 17,90
106 2,99 2,99
107 4,20 4,20
108 5,00 5,00
109 38,60 38,60
110 23,00 23,00
111 19,40 19,40
112 5,90 5,90
113 20,90 20,90
114 44,99 44,99
115 18,99 18,99
116 4,60 4,60
117 5,30 5,30
118 17,00 17,00
119 12,35 12,35
120 51,60 51,60
121 36,99 36,99
122 3,50 3,50
123 42,40 42,40
124 48,50 48,50
125 9,00 9,00
126 34,99 34,99
127 13,40 13,40
128 15,50 15,50
129 16,99 16,99
130 5,50 5,50
131 11,00 11,00
132 38,99 38,99
133 19,89 19,89
134 21,40 21,40
135 34,90 34,90
136 32,90 32,90
137 8,99 8,99
138 8,89 8,89
139 9,30 9,30
140 9,50 9,50
141 25,50 25,50
142 16,40 16,40
143 29,50 29,50
144 24,99 24,99
145 18,25 18,25
146 20,60 20,60
147 5,89 5,89
148 6,25 6,25
149 6,89 6,89
150 24,00 24,00
151 35,25 35,25
152 32,4 32,4
153 5,25 5,25
154 4,3 4,3
155 34,6 34,6
156 14,25 14,25
157 17,25 17,25
158 20,3 20,3
159 22,9 22,9
160 26,5 26,5
161 33,89 33,89
162 28,6 28,6
163 9,5 9,5
164 36,99 36,99
165 13,3 13,3
166 35 35
167 35,25 35,25
168 9,89 9,89
169 16,25 16,25
170 29,99 29,99
171 21,89 21,89
172 36,89 36,89
173 16,6 16,6
174 10,3 10,3
175 13,8 13,8
176 11,5 11,5
177 18,6 18,6
178 10 10
179 12,25 12,25
180 15,99 15,99
181 37,4 37,4
182 31,6 31,6
183 17,5 17,5
184 30,8 30,8
185 10,25 10,25
186 24 24
187 9,99 9,99
188 29,99 29,99
189 37,25 37,25
190 20,89 20,89
191 23 23
192 36,99 36,99
193 4,99 4,99
194 33,5 33,5
195 18,5 18,5
196 31 31
197 35,3 35,3
198 10,99 10,99
199 11,5 11,5
200 22,3 22,3
201 12,00 12,00
202 17,30 17,30
203 17,90 17,90
204 15,40 15,40
205 7,40 7,40
206 18,20 18,20
207 16,20 17,99
208 10,70 10,70
209 10,10 10,10
210 15,50 15,50
211 19,90 19,90
212 8,60 8,60
213 17,20 17,20
214 14,60 14,60
215 14,60 14,60
216 9,50 9,50
217 12,40 12,40
218 11,00 11,00
219 16,60 16,60
220 7,40 7,40
221 12,90 12,90
222 8,10 8,10
223 7,80 7,80
224 14,20 14,20
225 13,10 13,10
226 16,80 16,80
227 12,30 12,30
228 19,30 19,30
229 16,40 16,40
230 12,90 12,90

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