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Market research of supermarket sales indicates that impulse buying in a supermarket is time-dependent. Keeping costumers in the store longer via tasting events, long check out lines, etc., results in higher expenditures on items not on shopping lists.
Let x represent the dollar amount spent on impulse buying in an unplanned 10 minute shopping interval. Based on an article in the Denver Post, the population is approximately normal with a mean of $19.75 and a standard deviation of $7.05.
a. What is the probability that an individual shopper spends between $17.25 and $21.60 on impulse buys?
b. What is the probability that a random sample of 50 shoppers will have a mean between $17.25 and $21.60?
c. Explain why the answers from part (a) and (b) are different.
d. What would happen to the probability in part b if the sample size was increased to n = 100? Explain why this happens.
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