An article in Forbes discusses the problem of oil and gas reserves around the world. Forecasting the amount of oil available is difficult. If the average number of barrels that can be pumped daily from an oil field is a normal random variable with mean 7,200 barrels and standard deviation 505 barrels, and a random sample of 20 days reveals a sample average of 6,100 barrels and standard deviation of 800, give a 95% highest-posterior-density credible set for the average number of barrels that can be pumped daily.
Answer to relevant QuestionsContinuing problem 15-15, suppose that a second random sample of 20 days reveals an average of 5,020 barrels and standard deviation of 650. Create a new 95% HPD credible set. An article in the Asia Pacific Journal of Management discusses the importance for firms to invest in social ties. A company is considering paying $150,000 for social activities over one year, hoping that productivity for the ...Many airlines flying overseas have recently considered changing the kinds of goods they sell at their in-flight duty-free services. Swiss, for example, is considering selling watches instead of the usual liquor and ...GM is designing a new car, the Chevrolet Volt, which is expected to get 100 mpg on the highway. In trying to estimate how much people would be willing to pay for the new car, the company assesses a normal distribution for ...Pizzas ‘R’ Us is a national restaurant chain with close to 100 restaurants across the United States. It is continuously in the process of finding and evaluating possible locations for new restaurants. For any potential ...
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