Reference no: EM13157538
Bob loves making candy, especially varieties of caramel, including plain, chocolate dipped caramels and chocolate dipped caramels with pecans. Bob has received lots of compliments from his friends and neighbors, and several have encouraged him to start his own candy making business.
After several days of research, Bob finds that the national average amount of money spent annually per person on this type of specialty candy is $75. Bob believes that the citizens in his area spend more than that per year. Knowing whether or not this is true could help Bob make a wise decision regarding his future business plans.
Bob wants to use statistics to support his claim, and to help him obtain a small business loan. Bob also wants to find an estimate of the true amount of money local citizens do spend on this type of specialty candy.
Bob randomly selects several people from his local phone book and asks the person that answers how much money they typically spend per year on candy like he will make. He obtains the following results (in dollars):
75, 74, 80, 68, 79, 85, 77, 82, 79, 67, 90, 72, 76, 75, 69, 85, 78, 79, 82, 66, 75, 85, 90, 76, 85, 67, 89, 82, 69, 79, 82, 80, 84, 79, 78, 81, 77, 84, 80, 76.
Based upon these results, Bob is hoping his area has a good customer base for his new business. Bob also hopes the bank is impressed with his use of statistics and will grant him the loan he needs to start it!
Questions:
1. What is an appropriate set of hypothesis for Bob to test?
2. Is a z- or t-value test appropriate for this situation? Why?
3. Perform an appropriate hypothesis test, showing all critical steps.
4. Do you support Bob's claim that citizens in his area spend more than $75 per year? Explain why or why not.
5. Find a 95% confidence interval for the true mean amount that citizens spend per year.
6. What do you think the lowest possible mean amount spent per year is? Why?
7. Does your answer to 6 agree with your answer to 4? Explain.
8. Do you think Bob has a good customer base for his new business? Explain.
|
Explain what does behavior imply about the attractive forces
: If a gas sample of a given size is moved into a larger container, the gas will expand to fill the container completely. What does this behavior imply about the attractive forces between gas particles?
|
|
What should be the total assets turnover
: A firm's goal is a return on equity (Return on Equity) of 10%. His total margin is projected to be 5%, and the goal of the relationship financial equity (Equity Financing Ratio) is 60%. What should be the Total Assets Turnover?
|
|
Zombeads is looking to increase awareness
: Zombeads is looking to increase awareness of its organization on Tulane's campus. What campus groups / organizations would be best for Zombeads to partner with, and why?
|
|
Laws and regulations of accounting
: Laws and Regulations of Accounting Write a paper (minimum of three pages, typed, double-spaced, size 12 font, 1 inch margins). Program outcome:Prepare and understand reporting procedures and requirements
|
|
Confidence interval for the true mean amount citizens spend
: Find a 95% confidence interval for the true mean amount that citizens spend per year. What do you think the lowest possible mean amount spent per year is? Why?
|
|
Explain liquids cannot be compressed easily
: Liquids cannot be compressed easily. What does this imply about the amount of space that must be present between the individual liquid particles?
|
|
Best capitalize on a mixed-age employee base
: What are specific strategies that an organization might use to best capitalize on a mixed-age employee base?
|
|
Compute the dividends to preferred stock
: Great Inc. has 8,000 shares of 5% $100 par non-cumulative preferred stock and 200,000 shares of $1 par common stock outstanding. Great Inc. declared a $500,000 dividend for the year 2008. No dividends were paid in 2007. Compute the dividends to pre..
|
|
Differential delivery cost per month for expanding
: It is futher estimated that the home delivery use of the trucks would be allocated 45% of the existing $6,500 fixed vehicle costs. What is the differential delivery cost per month for expanding into the home delivery market?
|