Do you want to own your own candy store? Wow! With some interest in running your own business and a decent credit rating, you can probably get a bank loan on startup costs for franchises such as Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain Chocolate Factory. Startup costs (in thousands of dollars) for a random sample of candy stores are given below. Assume that the population of x values has an approximately normal distribution.9817413290759411610085 **Title: Calculating Startup Costs for Your Own Candy Store Franchise**Are you interested in owning a candy store? With a passion for business and a solid credit rating, securing a bank loan for franchise startup costs might be within your reach. For franchises like Candy Express, The Fudge House, and others, understanding initial costs is crucial. Here's how you can calculate and analyze these costs.**Startup Costs Data (in thousand dollars):**- Costs: 98, 174, 132, 90, 75, 94, 116, 100, 85### Calculation Tasks:#### (a) Calculate Mean and Sample Standard Deviation- **Objective:** Use a calculator to find the sample mean ($\bar{x}$) and sample standard deviation ($s$).- **Instructions:** Round your answers to four decimal places. - Mean ($\bar{x}$) = \_\_\_\_ thousand dollars - Sample Standard Deviation ($s$) = \_\_\_\_ thousand dollars#### (b) Find a 90% Confidence Interval- **Objective:** Determine the 90% confidence interval for the population average startup cost ($\mu$) for candy store franchises.- **Instructions:** Round your answers to one decimal place. - Lower Limit = \_\_\_\_ thousand dollars - Upper Limit = \_\_\_\_ thousand dollars### Graph/Diagram Analysis:There are no graphs or diagrams included in this exercise. The focus is on calculation and statistical inference from the provided data set.#### Helpful Tips:- **Mean Calculation:** Sum all the startup costs and divide by the number of data points.- **Sample Standard Deviation:** Use the formula for sample standard deviation which accounts for each value's deviation from the mean.- **Confidence Interval:** Use the mean and standard deviation to calculate the confidence interval, which gives a range where the true average cost likely falls.Engaging in these calculations will enhance your understanding of financial planning and the statistical tools necessary for evaluating business ventures.

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Answered: Do you want to own your own candy…

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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Do you want to own your own candy store? Wow! With some interest in running your own business and a decent credit rating, you can probably get a bank loan on startup costs for franchises such as Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain Chocolate Factory. Startup costs (in thousands of dollars) for a random sample of candy stores are given below. Assume that the population of x values has an approximately normal distribution.

174

132

116

100

**Title: Calculating Startup Costs for Your Own Candy Store Franchise**

Are you interested in owning a candy store? With a passion for business and a solid credit rating, securing a bank loan for franchise startup costs might be within your reach. For franchises like Candy Express, The Fudge House, and others, understanding initial costs is crucial. Here's how you can calculate and analyze these costs.

**Startup Costs Data (in thousand dollars):**
- Costs: 98, 174, 132, 90, 75, 94, 116, 100, 85

### Calculation Tasks:

#### (a) Calculate Mean and Sample Standard Deviation
- **Objective:** Use a calculator to find the sample mean ($\bar{x}$) and sample standard deviation ($s$).
- **Instructions:** Round your answers to four decimal places.

- Mean ($\bar{x}$) = \_\_\_\_ thousand dollars
- Sample Standard Deviation ($s$) = \_\_\_\_ thousand dollars

#### (b) Find a 90% Confidence Interval
- **Objective:** Determine the 90% confidence interval for the population average startup cost ($\mu$) for candy store franchises.
- **Instructions:** Round your answers to one decimal place.

- Lower Limit = \_\_\_\_ thousand dollars
- Upper Limit = \_\_\_\_ thousand dollars

### Graph/Diagram Analysis:
There are no graphs or diagrams included in this exercise. The focus is on calculation and statistical inference from the provided data set.

#### Helpful Tips:
- **Mean Calculation:** Sum all the startup costs and divide by the number of data points.
- **Sample Standard Deviation:** Use the formula for sample standard deviation which accounts for each value's deviation from the mean.
- **Confidence Interval:** Use the mean and standard deviation to calculate the confidence interval, which gives a range where the true average cost likely falls.

Engaging in these calculations will enhance your understanding of financial planning and the statistical tools necessary for evaluating business ventures.

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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