6.39 Largest private companies. IPOs-initial public offerings of stock-create billions of dollars of new wealth for owners, PRIVCO managers, and employees of companies that were previously privately owned. Nevertheless, hundreds of large and thou- sands of small companies remain privately owned. The reve- nues of a random sample of 15 firms from Forbes 228 Largest Private Companies list are given in the table (next page). Company Staples Pilot Flying J Tenaska Energy Wawa Gulf States Toyota Brookshire Grocery Sinclair Oil Bose Mary Kay Drummond Petco SAS Forever 21 Rock Ventures Conair Revenue (in billions) $14.0 29.0 11.9 12.1 9.2 2.5 5.0 3.9 3.6 2.0 4.0 3.3 2.7 6.7 2.0 Source: Data from "America's Largest Private Companies," Forbes, December 17, 2019. a. Describe the population from which the random sam- ple 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 228 companies on the list is $5.0 billion. Is the claim believable?
6.39 Largest private companies. IPOs-initial public offerings of stock-create billions of dollars of new wealth for owners, PRIVCO managers, and employees of companies that were previously privately owned. Nevertheless, hundreds of large and thou- sands of small companies remain privately owned. The reve- nues of a random sample of 15 firms from Forbes 228 Largest Private Companies list are given in the table (next page). Company Staples Pilot Flying J Tenaska Energy Wawa Gulf States Toyota Brookshire Grocery Sinclair Oil Bose Mary Kay Drummond Petco SAS Forever 21 Rock Ventures Conair Revenue (in billions) $14.0 29.0 11.9 12.1 9.2 2.5 5.0 3.9 3.6 2.0 4.0 3.3 2.7 6.7 2.0 Source: Data from "America's Largest Private Companies," Forbes, December 17, 2019. a. Describe the population from which the random sam- ple 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 228 companies on the list is $5.0 billion. Is the claim believable?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:6.39 Largest private companies. IPOs-initial public offerings of
stock-create billions of dollars of new wealth for owners,
PRIVCO managers, and employees of companies that were previously
privately owned. Nevertheless, hundreds of large and thou-
sands of small companies remain privately owned. The reve-
nues of a random sample of 15 firms from Forbes 228 Largest
Private Companies list are given in the table (next page).
Company
Staples
Pilot Flying J
Tenaska Energy
Wawa
Gulf States Toyota
Brookshire Grocery
Sinclair Oil
Bose
Mary Kay
Drummond
Petco
SAS
Forever 21
Rock Ventures
Conair
Revenue (in billions)
$14.0
29.0
11.9
12.1
9.2
2.5
5.0
3.9
3.6
2.0
4.0
3.3
2.7
6.7
2.0
Source: Data from "America's Largest Private Companies," Forbes, December 17, 2019.
a. Describe the population from which the random sam-
ple was drawn.
b. Use a 98% confidence interval to estimate the mean
revenue of the population of companies in question.
e. Interpret your confidence interval in the context of the
problem.
d. What characteristic must the population possess to
ensure the appropriateness of the estimation procedur
used in part b?
e. Suppose Forbes reports that the true mean revenue of
the 228 companies on the list is $5.0 billion. Is the claim
believable?
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