Hugh Morris is the production manager for Funny Bone Novelty Products a company that manufactures novelty store items such as plastic barf and fake dog doo. Hugh has to schedule production for the new and improved Fly Ice product. This is a piece of clear plastic shaped like an ice cube with a large nasty fly in the middle. Funny Bone only sells to retail novelty stores in the U.S and there are 40,000 of these stores. He sent out a brochure to 400 randomly selected novelty stores. He got backorders for 2,000 units of Fly Ice for an average of 5 per store with a sample standard deviation of 2 units. Hugh will mail brochures to all 40,000 stores. a. What is your forecast for the total number of units ordered from the mass mailing to 40,000 stores? b. Construct a 99% confidence interval around your forecast.
Hugh Morris is the production manager for Funny Bone Novelty Products a company that manufactures novelty store items such as plastic barf and fake dog doo. Hugh has to schedule production for the new and improved Fly Ice product. This is a piece of clear plastic shaped like an ice cube with a large nasty fly in the middle. Funny Bone only sells to retail novelty stores in the U.S and there are 40,000 of these stores. He sent out a brochure to 400 randomly selected novelty stores. He got backorders for 2,000 units of Fly Ice for an average of 5 per store with a sample standard deviation of 2 units. Hugh will mail brochures to all 40,000 stores.
a. What is your forecast for the total number of units ordered from the mass mailing to 40,000 stores?
b. Construct a 99% confidence interval around your forecast.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
