Reference no: EM132855427

The price of a pound of tomatoes varies seasonally. Michael King, a store manager for a Kroger store in Detroit metro area, wants to price a pound of tomato competitively. He wants to use the price range for a pound of tomatoes in the Detroit metro area to price a pound of tomatoes for his store that he manages. He selects at random 39 stores in Detroit metro area and records the prices charged as shown below.

$1.32
$1.45
$1.20
$1.10
$0.99
$1.65
$1.99
$1.18
$1.59
$1.68
$1.43
$1.00
$1.29
$1.82
$1.09
$2.09
$1.79
$1.09
$1.72
$1.45
$1.53
$1.67
$1.78
$1.44
$1.60
$1.12
$1.39
$1.45
$1.78
$1.11
$1.18
$2.00
$1.00
$0.99
$1.45
$1.62
$1.45
$1.39
$1.89

a) Describe what is precision. Next, comment on precision of the following confidence intervals: 90%, 95%, 99%

b) If the decision maker wants to maintain the same confidence level, i.e. 99%, however, it is desired to improve the precision of this confidence interval, what option the decision maker has to improve the precision and still maintain the same confidence level?