Shopping on Black Friday. The day after Thanksgiving— called Black Friday—is one of the largest shopping days in the United States. Winthrop University researchers conducted interviews with a sample of 38 women shopping on Black Friday to gauge their shopping habits and reported the results in the International Journal of Retail and Distribution Management (Vol. 39, 2011). One question was, “How many hours do you usually spend shopping on Black Friday?” Data for the 38 shoppers are listed in the accompanying table.

a. Describe the population of interest to the researchers.

b. What is the quantitative variable of interest to the researchers?

c. Use the information in the table to estimate the population mean number of hours spent shopping on Black Friday with a 95% confidence interval.

d. Give a practical interpretation of the interval.

e. A retail store advertises that the true mean number of hours spent shopping on Black Friday is 5.5 hours. Can the store be sued for false advertising? Explain.

Short Answer

Expert verified

a. The population of interest to the researchers is all United States women who shop on Black Friday.

b. The quantitative variable of interest to the researchers is the number of hours spends shopping on Black Friday.

c. The 95% confidence interval for the population mean is (5.203 hours,6.955 hours)

d. For shopping on Black Friday, there is 95% confidence that the true population mean number of hours lies between 5.203 hours and 6.955 hours.

e. It can be concluded that the true mean 5.5 hours is reasonable value for population mean

Step by step solution

01

Given information

Data for the 38 samples given in the following table

02

Population of interest to researchers

The population of interest to the researchers is all United States women who shop on Black Friday.

03

Quantitative variable of interest to the researchers

The quantitative variable of interest to the researchers is the number of hours spends shopping on Black Friday.

04

Calculation of confidence interval

Since, mean of the given 38 samples is 6.079 and standard deviation is 2.755.

Let the confidence level be 0.95.

1α=0.95α=0.05α2=0.025

From table, the requiredz0.025 value for 95% confidence level is 1.96. Thus, z0.025=1.96

The 95% confidence interval is obtained as shown below:

x¯±zα2σx¯=6.079±1.962.75538=6.079±1.960.4469=6.079±0.8759

.6.0790.8759,6.079+0.8759=5.203,6.955

Thus, the 95% confidence interval for the population mean is (5.203 hours, 6.955 hours).

05

Interpretation for confidence interval

For shopping on Black Friday, there is 95% confidence that the true population mean number of hours lies between 5.203 hours and 6.955 hours.

06

Explanation

No, the store cannot be used for false advertising because the 95% confidence interval contains the population mean as 5.5 hours. Thus, it can be concluded that the true mean 5.5 hours is reasonable value for population mean. That is, the population mean lies inside the confidence interval (5.203, 6.955).

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

USGA golf ball tests. The United States Golf Association (USGA) tests all new brands of golf balls to ensure that they meet USGA specifications. One test conducted is intended to measure the average distance traveled when the ball is hit by a machine called "Iron Byron," a name inspired by the swing of the famous golfer Byron Nelson. Suppose the USGA wishes to estimate the mean distance for a new brand to within 1 yard with 90% confidence. Assume that

past tests have indicated that the standard deviation of the distances Iron Byron hits golf balls is approximately 10 yards. How many golf balls should be hit by Iron Byron to achieve the desired accuracy in estimating the mean?

Accounting and Machiavellianism. Refer to the Behavioral Research in Accounting (January 2008) study of Machiavellian traits in accountants, Exercise 1.33 (p. 52). Recall that Machiavellian describes negative character traits that include manipulation, cunning, duplicity, deception, and bad faith. A Machiavellian (“Mach”) rating score was determined for each in a sample of accounting alumni of a large southwestern university. Scores range from a low of 40 to a high of 160, with the theoretical neutral Mach rating score of 100. The 122 purchasing managers in the sample had a mean Mach rating score of 99.6, with a standard deviation of 12.6.

a. From the sample, estimate the true mean Mach rating score of all purchasing managers.

b. Form a 95% confidence interval for the estimate, part b.

c. Give a practical interpretation of the interval, part c.

d. A director of purchasing at a major firm claims that the true mean Mach rating score of all purchasing managers is 85. Is there evidence to dispute this claim? From the given information we have 122 purchasing managers in the sample had a mean Mach rating score of 99.6, with a standard deviation of 12.6.

Largest private companies. IPOs—initial public offerings of stock—create billions of dollars of new wealth for owners, managers, and employees of companies that were previously privately owned. Nevertheless, hundreds of large and thousands of small companies remain privately owned. The revenues of a random sample of 15 firms from Forbes 216 Largest Private Companies list are given in the table below

a. Describe the population from which the random sample was drawn.

b. Use a 98% confidence interval to estimate the mean revenue of the population of companies in question

c. Interpret your confidence interval in the context of the problem

d. What characteristic must the population possess to ensure the appropriateness of the estimation procedure used in part b?

e. Suppose Forbes reports that the true mean revenue of the 216 companies on the list is $5.0 billion. Is the claim believable?

The following sample of 16 measurements was selected from a population that is approximately normally distributed:

  1. Construct an 80% confidence interval for the population mean.
  2. Construct a 95% confidence interval for the population mean and compare the width of this interval with that of part a.
  3. Carefully interpret each of the confidence intervals and explain why the 80% confidence interval is narrower.

Calculate the finite population correction factor for each

of the following situations:

a. n = 50, N = 2,000

b. n = 20, N = 100

c. n = 300, N = 1,500

See all solutions

Recommended explanations on Math Textbooks

View all explanations

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free