Question

Suppose your company wanted to determine the amount of sales of a new SUV model, called Lightning. The sales estimate would be based on the overall demand of various SUV model types. Overall demand is assumed to be normally distributed with a mean of 3 million units and standard deviation of 500,000 units. The share of demand that Lightning will take is assumed to be 4%. After running 1,000 simulated scenarios, a 95% confidence interval was constructed for the expected sales of Lightning units sold with limits of 93,048 and 146,964. If a mean of 6 million units was used in the simulation, how would the confidence interval change? Explain. How would the confidence interval change if a standard deviation of 250,000 was used? Explain.

Answer #1

Suppose your company wanted to determine the amount of sales of
a new SUV model, called Lightning. The sales estimate
would be based on the overall demand of various SUV model types.
Overall demand is assumed to be normally distributed with a mean of
3 million units and standard deviation of 500,000 units. The share
of demand that Lightning will take is assumed to be 4%.
After running 1,000 simulated scenarios, a 95% confidence interval
was constructed for the expected...

In preparing for the upcoming holiday season, Fresh Toy Company
(FTC) designed a new doll called The Dougie that teaches children
how to dance. The fixed cost to produce the doll is $100,000. The
variable cost, which includes material, labor, and shipping costs,
is $34 per doll. During the holiday selling season, FTC will sell
the dolls for $42 each. If FTC overproduces the dolls, the excess
dolls will be sold in January through a distributor who has agreed
to...

At a new store, a sample of sales in 36 days was selected in
order to determine whether the average sales in this store is
significantly different from $2000, the average sales for your
original store. You believe that the he standard deviation of sales
is $200. The average sales at the new store is $2100.
A. Determine whether or not the average score of the new store
is significantly different from $2000. Use ?=.05.
B. Would your answer be...

Suppose a specialty food chain wants to compare the change in
sales across different regions. An examination of the difference in
sales over a 37-week period in a recent year for 8 stores in state
A to 12 stores in nearby states reveals the following descriptive
statistics for relative increase in sales. (If these means are
multiplied by 100, they show % increase in sales.)
State
N
Mean
StDev
A
7
0.0726
0.0669
Other
13
0.0597
Standard Deviation for other...

A nutritionist wants to determine how much time nationally
people spend eating and drinking. Suppose for a random sample of
1124 people age 15 or older, the mean amount of time spent eating
or drinking per day is 2.09 hours with a standard deviation of 0.76
hours. Complete parts (a) through (d) below.
(a) A histogram of time spent eating and drinking each day is
skewed right. Use this result to explain why a large sample size is
needed to...

PROBLEM: Suppose that an accounting firm does a study to
determine the time needed to complete one person's tax forms. It
randomly surveys 200 people. The sample mean is 23.1 hours. There
is a known population standard deviation of 6.2 hours. The
population distribution is assumed to be normal.
a) Find the following. (Enter exact numbers as integers,
fractions, or decimals.)
x-bar = ______
σ = ______
n = _______
b) In words, define the random variables X and
X-bar...

Suppose that 14 children, who were learning to ride two-wheel
bikes, were surveyed to determine how long they had to use training
wheels. It was revealed that they used them an average of
elevenmonths with a sample standard deviation of three months.
Assume that the underlying population distribution is normal.
1. Which distribution should you use for this problem? (Enter
your answer in the form z or
tdf where df is the degrees
of freedom.)
2. Construct a 99% confidence...

Suppose that an accounting firm does a study to determine the
time needed to complete one person's tax forms. It randomly surveys
175 people. The sample mean is 22.1 hours. There is a known
population standard deviation of 6.6 hours. The population
distribution is assumed to be normal.
NOTE: If you are using a Student's t-distribution, you may
assume that the underlying population is normally distributed. (In
general, you must first prove that assumption, though.)
A. Find the following. (Enter exact...

A nutritionist wants to determine how much time nationally people
spend eating and drinking. Suppose for a random sample of
10301030
people age 15 or? older, the mean amount of time spent eating or
drinking per day is
1.981.98
hours with a standard deviation of
0.520.52
hour. Complete parts ?(a) through ?(d) below.
?(a) A histogram of time spent eating and drinking each day is
skewed right. Use this result to explain why a large sample size is
needed to...

A nutritionist wants to determine how much time nationally
people spend eating and drinking. Suppose for a random sample of
1024 people age 15 or older, the mean amount of time spent eating
or drinking per day is 1.61 hours with a standard deviation of 0.55
hour. Complete parts (a) through (d) below. (a) A histogram of
time spent eating and drinking each day is skewed right. Use this
result to explain why a large sample size is needed to...

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