Prompt: The owners of a small mail order business want to estimate their average

Question

Prompt: The owners of a small mail order business want to estimate their average annual sales. They randomly select 100 sales from their first quarter to analyze. For the samples, the average amount spent was $235.12 with a standard error of $12.41. Response Parameters What conditions, or assumptions, should be verified before using the sample values to estimate the population mean? If these conditions are satisfied, what is the probability that you would get a sample with a sample mean of $230.00 or less? If they expect to have 50,000 sales this year, what is their expected value of the total sales for the year?

Explanation / Answer

for above to be used, we mustr be assured that data is random and approximately normally distributed

1)

P(X<230)=P(t<(230-235.12)/12.41)=1-P(t<-0.4125)=1-0.3404=0.6596

2)expected sales =50000*235.12=$11756000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.