Answered: A new breakfast cereal is test-marketed…

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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A new breakfast cereal is test-marketed for 1 month at stores of a large supermarket chain. The results for a sample of 16 stores indicate average sales of $1,200 with a standard deviation of $180. Assuming a normal distribution set up a 95% confidence interval estimate of the true average sales of this new breakfast cereal (see the last page for the solutions). State the meaning of µ first, and then interpret the interval; you may use the TI-84 t interval option.

The answer is 95% (1104.1, 1295.9)

1. If the mean sales of the new cereal are at least $1000 per month, the stores will start selling the cereal for a one-year trial. Should the new cereal get its chance in the cereal aisle for a one-year trial? Explain.

Answer number 1

Features Features Normal distribution is characterized by two parameters, mean (µ) and standard deviation (σ). When graphed, the mean represents the center of the bell curve and the graph is perfectly symmetric about the center. The mean, median, and mode are all equal for a normal distribution. The standard deviation measures the data's spread from the center. The higher the standard deviation, the more the data is spread out and the flatter the bell curve looks. Variance is another commonly used measure of the spread of the distribution and is equal to the square of the standard deviation.

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