Question

Available packaging time is changing randomly. Assume that the standard deviation of packaging time is known being ? = 40 minutes. Using data of 10 previous packaging times in minutes (see Sheet ‘pack’), at 95% confidence level find interval estimate for the expected packaging time. What if the available packaging time is changing randomly within this confidence interval? a. What is the sample mean? b. What is the sample standard deviation? c. What is the standard error of the mean? d. What is the margin of error? e. What is the lower limit of the confidence interval? f. What is the upper limit of the confidence interval? g. Is the confidence interval lying within the allowed interval of this constraint righthand side? h. If the available packaging time is changing randomly within this confidence interval, is the respective shadow price valid? i. If the available packaging time is changing randomly within this confidence interval, what is the largest possible change in maximal revenue?

Available packing time

290

369

387

335

302

299

396

337

318

352

selling price of champaign glasses

10

7,6

9,8

10,5

8,4

7,7

9,8

10,5

8,4

10,9

7,5

10,1

10,7

9,6

9,1

7,9

7,2

6,8

9,4

7,4

8,8

8,8

11,1

8,3

9

Answer 1