Question: Following up on the previous problem SoftBus believes its profit

Following up on the previous problem, SoftBus believes its profit from each prospective customer depends on the customer’s level of PC knowledge. It divides the customers into three classes: PC-savvy, PC-illiterate, and all others (where the first two classes are as defined in the previous problem). As a rough guide, SoftBus figures it can gain profit P1 from each PC-savvy customer, profit P3 from each PC-illiterate Company, and profit P2 from each of the others.
a. What values of P1, P2, and P3 seem reasonable? For example, would you expect P1 < P2 < P3 or the opposite?
b. Using any reasonable values for P1, P2, and P3, find a 95% confidence interval for the mean profit per customer that SoftBus can expect to obtain.

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  • CreatedApril 01, 2015
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