# Question: According to the Federal Trade Commission FTC about 3 4 of

According to the Federal Trade Commission (FTC), about 3.4% of items come up at the wrong price when scanned at the retail checkout counter. Freda Thompson, director of investigations for her state’s consumer affairs office, sets up a study in which she has undercover shoppers (sometimes known as “mystery shoppers”) randomly select and purchase 600 items from Wal-Mart department stores across her state. Suppose that researchers find 15 of the 600 items have been incorrectly priced by the checkout scanner, an error rate of just 2.5%. If Wal-Mart’s overall rate of scanning errors is the same as the rate cited by the FTC, what is the probability that no more than 2.5% of the items purchased by Freda’s investigators would be incorrectly priced when they are scanned? Given the assumed sample result, comment on whether Wal-Mart might be typical of other companies in terms of their error rate for scanning retail items.

**View Solution:**## Answer to relevant Questions

What is meant by a finite population and how can this affect the sampling distribution of a mean or a proportion? Using the procedures in Computer Solutions 8.1 as a general guide, simulate 150 simple random samples of size n = 2 from an exponential distribution with a mean of 6. Determine the mean and the standard deviation of the 150 ...Given the following probability distribution for an infinite population with the discrete random variable, x: a. Determine the mean and the standard deviation of x. b. For the sample size n = 2, determine the mean for each ...As a project for their high school mathematics class, four class members purchase packages of a leading breakfast cereal for subsequent weighing and comparison with the 12-ounce label weight. The students are surprised when ...For a random variable that is normally distributed, with μ = 200 and σ = 20, determine the probability that a simple random sample of 4 items will have a mean that is a. Greater than 210. b. Between 190 and 230. c. Less ...Post your question