Suppose you work for a smoothie shop and you want to assess whether the average transaction value at your shop is different from the competing smoothie shop on the other block. To do so, you randomly sample 19 of your shop's transactions and record a sample average of $9.75 and sample standard deviation of $3.50. You then collect data on 15 randomly selected transactions from the competing smoothie shop. This sample has a mean of $11.00 and a standard deviation of $4.70. What is your point estimate for the difference in your shop's average average transaction value minus the average transaction value of the competing smoothie shop? -$1.25 $0.46 not enough information $4.77
Added by Jasmine C.
Close
Step 1
Step 1: The point estimate for the difference in the average transaction value is the difference between the sample means. Show more…
Show all steps
Your feedback will help us improve your experience
Derek Fairburn and 70 other Intro Stats / AP Statistics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
You own a small storefront retail business and are interested in determining the average amount of money a typical customer spends per visit to your store. You take a random sample over the course of a month for 9 customers and find that the average dollar amount spent per transaction per customer is $113.075 with a standard deviation of $15.4543. Create a 95% confidence interval for the true average spent for all customers per transaction. Question 1 options: 1) ( 110.769 , 115.381 ) 2) ( 101.196 , 124.954 ) 3) ( 101.422 , 124.728 ) 4) ( 107.924 , 118.226 ) 5) ( -101.196 , 124.954 )
Derek F.
Suppose you have been following a particular airline stock for many years. You are interested in determining the average daily price of this stock in a 10-year period and you have access to the stock reports for these years. However, you do not want to average all the daily prices over 10 years because there are several thousand data points, so you decide to take a random sample of the daily prices and estimate the average. You want to be 90% confident of your results, you want the estimate to be within $3.00 of the true average, and you believe the standard deviation of the price of this stock is about $14.00 over this period of time. How large a sample should you take?
David N.
Falcon Chocolates makes quality chocolate products and sells its products through a website. You work in Falcon’s marketing department and your team has been tasked with developing new strategies to increase the company’s internet sales. Using the data from last year, you found the following information: 75% of the transactions were conducted using Explorer as the web browser; the time spent on the company’s website was normally distributed with a mean of 7 minutes per transaction and a standard deviation of 1.3 minutes per transaction. the amount spent was normally distributed with a mean of $72 per transaction and a standard deviation of $12.50 per transaction. You assume this information has not changed this year. Suppose 500 transactions are taken from the company’s website. (b) [2 points] What is the probability the sample mean time spent on the website is more than 6.85 minutes.
Jon S.
Recommended Textbooks
Elementary Statistics a Step by Step Approach
The Practice of Statistics for AP
Introductory Statistics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD