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.

  • CreatedApril 01, 2015
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