Prediction interval or a confidence interval

Reference no: EM131009371

1. A retailer has data on sales in its stores yesterday. It would like a range that has a 50% chance of covering the sales of a randomly selected store today. Which does the retailer need, a prediction interval or a confidence interval?

2. A tax auditor wants to identify tax returns that report unusually low or unusually high deductions. Does the auditor need a prediction interval or a confidence interval?

Reference no: EM131009371

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