Question

A small business uses a website to sell clothing and accessories. The owners use data analytics and have determined, based on the past 6 months of web visit data, that on any given day the website receives an average of, μ = 3,000 visits (hits) per day with a standard deviation of σ = 300 visits (hits) per day.

a.) Using Chebysheff’s theorem find the Chebysheff Confidence interval, IK , which indicates the number of customers that will visit the website at least 75% of the time (days).

b.) If the average purchase per customer is $50. Based on the results in part a, what daily revenue can the owners expect at least 75% of the days?

Answer 1

(a)

According to Chebysheff’s theorem, at least 75% data values lie within 2 standard deviations of mean. That is  the Chebysheff Confidence interval, IK , which indicates the number of customers that will visit the website at least 75% of the time is

Answer: (2400, 3600)

(b)

Since average purchase per customer is $50 so daily revenue can the owners expect at least 75% of the days is between (2400*75 = 180000, 3600 *75 = 270000).

Answer: ($180000, $270000)