Question

ack is a restaurant owner in San Francisco downtown. Due to the recent coronavirus pandemic, he can now accept orders only for pickups and delivery services. This change in the format of incoming orders has made him revisit his assumption for daily estimation of order arrival. The reason why he needs to make this estimation, is for him to prepare the raw materials the night before, for the following day orders. Based on his past experience, his assumption has been to expect around 20.25 orders a day. He also knows that regardless of season or the situation, the incoming orders always follow a normal distribution. However, to re-evaluate his assumption of 20.25 orders a day, he decided to keep a track of the total number of orders per day for about 10 days. Now Jack has come to you to help him evaluate the daily demand since he knows you are a pro in supply chain analytics. Using the information that Jack has recorded in the table below, please calculate the upper and lower bound for a 90% confidence interval. i am confused, it says normal distribution but then the sample size is 10 sjould i use t or normal dist.

Answer 1

Normal distribution should be used for computing the confidence interval eventhough there are only 10 observations. This is because the restaurant owner knows that regardless of the situation or the season, the incoming orders always follow a normal distribution. Therefore, even in the situation of the pandemic, the distribution will be normal. The only change would be that the mean number of orders might have changed.

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