Big Company was intending to take-over Small Company. They specified the take-over would only occur if the mean purchase per customer for the year was in excess of R1000-.

 a. Given the information, would small business fall within the specified criteria? 

b. If Big Company could get access to the amount spent by each customer, as individual amounts, rather than in the table format above, would the result be more accurate? Why? 

c. What else could you calculate, and would that assist you in advising Big Company on whether they should purchase small company or not? 

Transcribed Image Text:

Rand spent 1 - 500 501 - 1000 1001 - 1500 1501 - 2000 2001 - 2500 2501 - 3000 3001 - 3500 Number of customers 600 521 220 110 55 80 150 Rand spent 1 - 500 501 - 1000 1001 - 1500 1501 - 2000 2001 - 2500 2501 - 3000 3001 - 3500 Number of customers 600 521 220 110 55 80 150

Answer rating: 100% (QA)

a Determine if Small Company falls within the specified criteria Mean Purchase Per Customer Total Pu... View the full answer