The company Tasty Market wants to find new packaging for its pralines. The management is still unsure
Question:
The company Tasty Market wants to find new packaging for its pralines. The management is still unsure about which colour to use. Previously, the pralines were packaged in yellow. Now a blue colour is in discussion.
(a) As part of a market research study in 25 of the 200 Tasty Market stores, you must investigate the effect of packaging colour on weekly sales. Assume that sales follow a normal distribution. For the blue packaging, you identify average weekly sales of 9982 packages and an empirical standard deviation of 410 packages. Calculate the 90% confidence interval for the expected sales.
(b) How does the confidence interval change if you select a higher confidence level? Explain your answer.
(c) What is the true empirical standard deviation with a probability of at least 99.5%?
Step by Step Answer:
Applied Statistics And Multivariate Data Analysis For Business And Economics
ISBN: 9783030177669
1st Edition
Authors: Thomas Cleff