OfficeMax, a chain that sells a wide variety of office equipment often features sales of products whose prices are reduced because of rebates. Some rebates are so large that the effective price becomes $0. The goal is to lure customers into the store to buy other non-sale items. A secondary objective is to acquire addresses and telephone numbers to sell to telemarketers and other mass marketers. During one week in January, OfficeMax offered a 100-eack of CD-ROMs (regular price $29.99 minus $10 instant rebate, $12 manufacturer’s rebate, and $8 OfficeMax mail-in rebate). The number of packages was limited, and no rain checks were issued. In all OfficeMax stores, 2,800 packages were in stock. All were sold. A random sample of 122 buyers was undertaken. Each was asked to report the total value of the other purchases made that day. Estimate with 95% confidence the total spent on other products purchased by those who bought the CD-ROMs.
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