Item # Shelf Price Price at the Register 1 $ 30.60 $ 30.60 2 $ 26.90 $
Question:
| Item # | Shelf Price | Price at the Register |
| 1 | $ 30.60 | $ 30.60 |
| 2 | $ 26.90 | $ 26.90 |
| 3 | $ 21.60 | $ 21.60 |
| 4 | $ 43.60 | $ 43.60 |
| 5 | $ 25.99 | $ 25.99 |
| 6 | $ 3.60 | $ 3.60 |
| 7 | $ 7.50 | $ 7.50 |
| 8 | $ 10.25 | $ 10.25 |
| 9 | $ 24.50 | $ 24.50 |
| 10 | $ 12.00 | $ 12.00 |
| 11 | $ 15.90 | $ 15.90 |
| 12 | $ 24.49 | $ 24.49 |
| 13 | $ 56.89 | $ 56.89 |
| 14 | $ 9.25 | $ 9.25 |
| 15 | $ 68.00 | $ 68.00 |
| 16 | $ 33.00 | $ 33.00 |
| 17 | $ 5.00 | $ 5.00 |
| 18 | $ 39.89 | $ 39.89 |
| 19 | $ 5.50 | $ 5.50 |
| 20 | $ 24.85 | $ 26.85 |
| 21 | $ 4.50 | $ 4.50 |
| 22 | $ 19.90 | $ 19.90 |
| 23 | $ 35.89 | $ 35.89 |
| 24 | $ 33.60 | $ 33.60 |
| 25 | $ 4.70 | $ 4.70 |
| 26 | $ 41.50 | $ 41.50 |
| 27 | $ 25.50 | $ 25.50 |
| 28 | $ 17.50 | $ 17.50 |
| 29 | $ 38.00 | $ 38.00 |
| 30 | $ 4.80 | $ 4.80 |
| 31 | $ 37.75 | $ 37.75 |
| 32 | $ 16.85 | $ 16.85 |
| 33 | $ 52.89 | $ 52.89 |
| 34 | $ 65.30 | $ 65.30 |
| 35 | $ 68.25 | $ 68.25 |
| 36 | $ 3.50 | $ 3.50 |
| 37 | $ 48.60 | $ 48.99 |
| 38 | $ 63.00 | $ 60.00 |
| 39 | $ 25.75 | $ 25.75 |
| 40 | $ 3.80 | $ 3.80 |
| 41 | $ 1.90 | $ 1.90 |
| 42 | $ 43.35 | $ 43.35 |
| 43 | $ 26.10 | $ 26.10 |
| 44 | $ 19.89 | $ 19.89 |
| 45 | $ 34.00 | $ 34.00 |
| 46 | $ 24.99 | $ 24.99 |
| 47 | $ 12.85 | $ 12.85 |
| 48 | $ 14.90 | $ 14.90 |
| 49 | $ 52.90 | $ 52.90 |
| 50 | $ 9.50 | $ 9.50 |
| 51 | $ 11.00 | $ 11.00 |
| 52 | $ 25.75 | $ 25.75 |
| 53 | $ 40.00 | $ 40.00 |
| 54 | $ 30.90 | $ 30.90 |
| 55 | $ 9.99 | $ 9.99 |
| 56 | $ 20.99 | $ 20.99 |
| 57 | $ 45.99 | $ 45.99 |
| 58 | $ 2.00 | $ 2.00 |
| 59 | $ 7.99 | $ 6.99 |
| 60 | $ 75.30 | $ 75.30 |
| 61 | $ 25.50 | $ 25.50 |
| 62 | $ 2.70 | $ 2.70 |
| 63 | $ 2.99 | $ 2.99 |
| 64 | $ 4.90 | $ 4.90 |
| 65 | $ 73.60 | $ 73.60 |
| 66 | $ 28.60 | $ 28.60 |
| 67 | $ 59.30 | $ 59.30 |
| 68 | $ 50.89 | $ 50.89 |
| 69 | $ 24.99 | $ 24.99 |
| 70 | $ 6.99 | $ 6.99 |
| 71 | $ 58.49 | $ 58.49 |
| 72 | $ 11.85 | $ 11.85 |
| 73 | $ 2.70 | $ 2.70 |
| 74 | $ 53.30 | $ 53.30 |
| 75 | $ 30.00 | $ 30.00 |
| 76 | $ 20.99 | $ 20.99 |
| 77 | $ 3.90 | $ 3.90 |
| 78 | $ 20.30 | $ 20.30 |
| 79 | $ 39.60 | $ 39.60 |
| 80 | $ 75.89 | $ 75.89 |
| 81 | $ 1.90 | $ 1.90 |
| 82 | $ 42.49 | $ 42.49 |
| 83 | $ 26.00 | $ 26.00 |
| 84 | $ 33.50 | $ 33.50 |
| 85 | $ 19.90 | $ 19.90 |
| 86 | $ 40.89 | $ 40.89 |
| 87 | $ 25.60 | $ 25.60 |
| 88 | $ 46.10 | $ 46.10 |
| 89 | $ 13.99 | $ 13.99 |
| 90 | $ 1.99 | $ 1.99 |
| 91 | $ 63.50 | $ 63.50 |
| 92 | $ 44.60 | $ 44.60 |
| 93 | $ 55.25 | $ 55.25 |
| 94 | $ 40.30 | $ 40.30 |
| 95 | $ 5.20 | $ 5.20 |
| 96 | $ 24.35 | $ 24.35 |
| 97 | $ 2.80 | $ 5.80 |
| 98 | $ 36.90 | $ 36.90 |
| 99 | $ 57.89 | $ 57.89 |
| 100 | $ 39.35 | $ 39.35 |
| 101 | $ 13.99 | $ 13.99 |
| 102 | $ 64.90 | $ 64.90 |
| 103 | $ 28.50 | $ 28.50 |
| 104 | $ 42.40 | $ 42.40 |
| 105 | $ 17.90 | $ 17.90 |
| 106 | $ 2.99 | $ 2.99 |
| 107 | $ 4.20 | $ 4.20 |
| 108 | $ 5.00 | $ 5.00 |
| 109 | $ 38.60 | $ 38.60 |
| 110 | $ 23.00 | $ 23.00 |
| 111 | $ 19.40 | $ 19.40 |
| 112 | $ 5.90 | $ 5.90 |
| 113 | $ 20.90 | $ 20.90 |
| 114 | $ 44.99 | $ 44.99 |
| 115 | $ 18.99 | $ 18.99 |
| 116 | $ 4.60 | $ 4.60 |
| 117 | $ 5.30 | $ 5.30 |
| 118 | $ 17.00 | $ 17.00 |
| 119 | $ 12.35 | $ 12.35 |
| 120 | $ 51.60 | $ 51.60 |
| 121 | $ 36.99 | $ 36.99 |
| 122 | $ 3.50 | $ 3.50 |
| 123 | $ 42.40 | $ 42.40 |
| 124 | $ 48.50 | $ 48.50 |
| 125 | $ 9.00 | $ 9.00 |
| 126 | $ 34.99 | $ 34.99 |
| 127 | $ 13.40 | $ 13.40 |
| 128 | $ 15.50 | $ 15.50 |
| 129 | $ 16.99 | $ 16.99 |
| 130 | $ 5.50 | $ 5.50 |
| 131 | $ 11.00 | $ 11.00 |
| 132 | $ 38.99 | $ 38.99 |
| 133 | $ 19.89 | $ 19.89 |
| 134 | $ 21.40 | $ 21.40 |
| 135 | $ 34.90 | $ 34.90 |
| 136 | $ 32.90 | $ 32.90 |
| 137 | $ 8.99 | $ 8.99 |
| 138 | $ 8.89 | $ 8.89 |
| 139 | $ 9.30 | $ 9.30 |
| 140 | $ 9.50 | $ 9.50 |
| 141 | $ 25.50 | $ 25.50 |
| 142 | $ 16.40 | $ 16.40 |
| 143 | $ 29.50 | $ 29.50 |
| 144 | $ 24.99 | $ 24.99 |
| 145 | $ 18.25 | $ 18.25 |
| 146 | $ 20.60 | $ 20.60 |
| 147 | $ 5.89 | $ 5.89 |
| 148 | $ 6.25 | $ 6.25 |
| 149 | $ 6.89 | $ 6.89 |
| 150 | $ 24.00 | $ 24.00 |
| 151 | $ 35.25 | $ 35.25 |
| 152 | $ 32.40 | $ 32.40 |
| 153 | $ 5.25 | $ 4.25 |
| 154 | $ 4.30 | $ 4.30 |
| 155 | $ 34.60 | $ 34.60 |
| 156 | $ 14.25 | $ 14.25 |
| 157 | $ 17.25 | $ 17.25 |
| 158 | $ 20.30 | $ 20.30 |
| 159 | $ 22.90 | $ 22.90 |
| 160 | $ 26.50 | $ 26.50 |
| 161 | $ 33.89 | $ 33.89 |
| 162 | $ 28.60 | $ 28.60 |
| 163 | $ 9.50 | $ 9.50 |
| 164 | $ 36.99 | $ 36.99 |
| 165 | $ 13.30 | $ 13.30 |
| 166 | $ 35.00 | $ 35.00 |
| 167 | $ 35.25 | $ 35.25 |
| 168 | $ 9.89 | $ 9.89 |
| 169 | $ 16.25 | $ 16.25 |
| 170 | $ 29.99 | $ 29.99 |
| 171 | $ 21.89 | $ 21.89 |
| 172 | $ 36.89 | $ 36.89 |
| 173 | $ 16.60 | $ 16.60 |
| 174 | $ 10.30 | $ 10.30 |
| 175 | $ 13.80 | $ 13.80 |
| 176 | $ 11.50 | $ 11.50 |
| 177 | $ 18.60 | $ 18.60 |
| 178 | $ 10.00 | $ 10.00 |
| 179 | $ 12.25 | $ 12.25 |
| 180 | $ 15.99 | $ 15.99 |
| 181 | $ 37.40 | $ 37.40 |
| 182 | $ 31.60 | $ 31.60 |
| 183 | $ 17.50 | $ 17.50 |
| 184 | $ 30.80 | $ 30.80 |
| 185 | $ 10.25 | $ 10.25 |
| 186 | $ 24.00 | $ 24.00 |
| 187 | $ 9.99 | $ 9.99 |
| 188 | $ 29.99 | $ 29.99 |
| 189 | $ 37.25 | $ 37.25 |
| 190 | $ 20.89 | $ 20.89 |
| 191 | $ 23.00 | $ 23.00 |
| 192 | $ 36.99 | $ 36.99 |
| 193 | $ 4.99 | $ 4.99 |
| 194 | $ 33.50 | $ 33.50 |
| 195 | $ 18.50 | $ 18.50 |
| 196 | $ 31.00 | $ 31.00 |
| 197 | $ 35.30 | $ 35.30 |
| 198 | $ 10.99 | $ 10.99 |
| 199 | $ 11.50 | $ 11.50 |
| 200 | $ 22.30 | $ 22.30 |
| 201 | $ 13.60 | $ 13.60 |
| 202 | $ 6.59 | $ 6.59 |
| 203 | $ 10.19 | $ 10.19 |
| 204 | $ 23.99 | $ 23.99 |
| 205 | $ 7.09 | $ 7.09 |
| 206 | $ 9.20 | $ 9.20 |
| 207 | $ 2.64 | $ 2.64 |
| 208 | $ 2.99 | $ 2.99 |
| 209 | $ 1.09 | $ 1.09 |
| 210 | $ 1.12 | $ 1.12 |
| 211 | $ 0.59 | $ 0.59 |
| 212 | $ 7.59 | $ 7.59 |
| 213 | $ 8.61 | $ 8.61 |
| 214 | $ 12.39 | $ 12.99 |
| 215 | $ 4.95 | $ 4.95 |
| 216 | $ 2.20 | $ 2.20 |
| 217 | $ 17.60 | $ 17.60 |
| 218 | $ 6.77 | $ 6.77 |
| 219 | $ 3.49 | $ 3.49 |
| 220 | $ 9.97 | $ 9.97 |
| 221 | $ 1.70 | $ 1.70 |
| 222 | $ 17.60 | $ 17.60 |
| 223 | $ 7.99 | $ 7.99 |
| 224 | $ 14.30 | $ 14.30 |
| 225 | $ 1.19 | $ 1.19 |
| 226 | $ 11.30 | $ 11.30 |
| 227 | $ 0.39 | $ 0.39 |
| 228 | $ 3.39 | $ 3.39 |
| 229 | $ 2.09 | $ 2.09 |
| 230 | $ 9.08 | $ 9.08 |
| 231 | $ 2.71 | $ 2.71 |
| 232 | $ 2.14 | $ 2.14 |
| 233 | $ 2.99 | $ 2.99 |
| 234 | $ 6.64 | $ 6.64 |
| 235 | $ 1.04 | $ 1.04 |
| 236 | $ 12.99 | $ 12.99 |
| 237 | $ 4.90 | $ 4.90 |
| 238 | $ 6.82 | $ 6.82 |
| 239 | $ 8.90 | $ 8.90 |
| 240 | $ 4.55 | $ 4.55 |
| 241 | $ 16.79 | $ 16.79 |
| 242 | $ 1.51 | $ 1.51 |
| 243 | $ 6.97 | $ 6.97 |
| 244 | $ 10.90 | $ 10.90 |
| 245 | $ 8.89 | $ 8.89 |
| 246 | $ 14.70 | $ 14.70 |
| 247 | $ 14.30 | $ 14.30 |
| 248 | $ 8.98 | $ 8.98 |
| 249 | $ 1.20 | $ 1.20 |
| 250 | $ 1.47 | $ 1.47 |
| 251 | $ 5.49 | $ 5.49 |
| 252 | $ 12.00 | $ 12.00 |
| 253 | $ 5.71 | $ 5.71 |
| 254 | $ 7.14 | $ 7.14 |
| 255 | $ 8.05 | $ 8.05 |
| 256 | $ 10.20 | $ 10.20 |
| 257 | $ 12.80 | $ 12.99 |
| 258 | $ 11.20 | $ 11.20 |
| 259 | $ 3.62 | $ 3.62 |
| 260 | $ 3.71 | $ 3.71 |
| 261 | $ 0.68 | $ 0.68 |
| 262 | $ 8.48 | $ 8.49 |
| 263 | $ 6.02 | $ 6.02 |
| 264 | $ 7.25 | $ 7.25 |
| 265 | $ 1.49 | $ 1.49 |
| 266 | $ 7.93 | $ 7.93 |
| 267 | $ 0.51 | $ 0.51 |
| 268 | $ 22.00 | $ 17.99 |
| 269 | $ 15.70 | $ 15.70 |
| 270 | $ 3.79 | $ 3.79 |
| 271 | $ 11.97 | $ 11.97 |
| 272 | $ 4.29 | $ 4.29 |
| 273 | $ 9.42 | $ 9.42 |
| 274 | $ 13.10 | $ 13.10 |
| 275 | $ 5.73 | $ 5.73 |
| 276 | $ 7.67 | $ 7.67 |
| 277 | $ 10.20 | $ 10.20 |
| 278 | $ 10.80 | $ 10.80 |
| 279 | $ 9.19 | $ 9.19 |
| 280 | $ 2.47 | $ 2.47 |
| 281 | $ 6.11 | $ 6.11 |
| 282 | $ 6.49 | $ 6.49 |
| 283 | $ 4.99 | $ 4.99 |
| 284 | $ 14.09 | $ 14.09 |
| 285 | $ 14.70 | $ 14.70 |
| 286 | $ 7.09 | $ 7.09 |
| 287 | $ 1.75 | $ 1.75 |
| 288 | $ 7.29 | $ 7.29 |
| 289 | $ 6.12 | $ 6.12 |
| 290 | $ 2.27 | $ 2.27 |
| 291 | $ 3.31 | $ 3.31 |
| 292 | $ 8.55 | $ 8.55 |
| 293 | $ 7.59 | $ 7.59 |
| 294 | $ 6.16 | $ 6.16 |
| 295 | $ 12.97 | $ 12.97 |
| 296 | $ 14.10 | $ 14.10 |
| 297 | $ 12.99 | $ 12.99 |
| 298 | $ 1.99 | $ 1.99 |
| 299 | $ 9.99 | $ 9.99 |
| 300 | $ 17.40 | $ 17.40 |
| 301 | $ 7.83 | $ 7.83 |
| 302 | $ 4.72 | $ 4.72 |
| 303 | $ 11.90 | $ 11.90 |
| 304 | $ 8.59 | $ 8.59 |
| 305 | $ 2.48 | $ 2.48 |
| 306 | $ 3.48 | $ 3.48 |
| 307 | $ 7.49 | $ 7.49 |
| 308 | $ 8.58 | $ 8.58 |
| 309 | $ 2.01 | $ 2.01 |
| 310 | $ 8.75 | $ 8.75 |
| 311 | $ 17.00 | $ 17.00 |
| 312 | $ 1.05 | $ 1.05 |
| 313 | $ 8.15 | $ 8.15 |
| 314 | $ 7.07 | $ 7.07 |
| 315 | $ 2.67 | $ 2.67 |
| 316 | $ 15.40 | $ 15.40 |
| 317 | $ 3.79 | $ 3.79 |
| 318 | $ 8.40 | $ 8.40 |
| 319 | $ 11.09 | $ 11.09 |
| 320 | $ 1.98 | $ 1.98 |
Theitemsfor sale in many retail stores sometimes ring up at a different priceat the cashregistercompared to the pricemarked on the shelf. Thisgoes unnoticedby many consumers.But whetherthe mistakesareintentionalor not, theretailers getcheckedby government inspectors(for overcharges only)andpotentially can be fined for the mistakesif theirerror rate is high enough.
The retailers also runthe risk of receivingbad publicity throughthe press.As an example,in onesuchinspection: "During Walmart's second inspection,the priceof a ceiling fan was off by $30. The shelf pricelisted the fan at $19.99, but it rang up as $49.97 at the register." For more, read:Inspector:One in 10 NC storesring up wrong prices.
To avoid the fine and the public embarrassment that follows after being caught, each retailer will self-inspect their records. They typically use the same process as the government inspectors by selecting a random sample of items for cross-checking the register and the shelf prices.
In a recent self-check, the store manager had her employees compare prices on 320 different items which were picked at random for cross-check. The employees recorded the shelf price and the price that appeared on the cash register. . The government inspector will not fine companies that have an error rate of less than 2%.
Question 1
Based on the data in this study, what is the estimate of proportion of items that will ring up at higher prices and thus be counted as a violation? Hint: Is your estimate a single number or a range of numbers?
Question 2
Based on your answer for Question 1, if an inspector showedup today, would the store manager be 95% confident thatthe storewill pass? Whyor whynot?
Question 3
If the manager wants to have a margin error of 0.5% (.005), then how many items needto be cross-checked?
Expert Answer:
ANSWER To address the questions Question 1 To estimate the proportion of items that will ring up at higher prices and thus be counted as a violation w... View the full answer
