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Mathematics, 07.04.2021 01:00 tfhdg
A drug store chain provides an app to its customers to track their shopping habits. One statistic the app
tracks is the amount of money the customer saves by purchasing sale items. The company's sales
team pulls data from the previous year for a random sample of 50 customers. They find that the
mean amount of money saved by these customers in the previous year is $154 with a standard
deviation of $26.
(a) Construct a 99% confidence interval for the true mean amount of money saved by all customers
in the previous year by purchasing sale items.
(b) The sales team would like to repeat this study with the goal of obtaining a smaller margin of
error. Propose two changes that would decrease the margin of error. What are potential
drawbacks if those changes are implemented?
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Answers: 1
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