Let x represent the dollar amount spent on supermarket impulse buying in a 10-minute (unplanned) shopping interval. Based on a newspaper article, the mean of the x distribution is about $24 and the estimated standard deviation is about $9. (a) Consider a random sample of n = 60 customers, each of whom has 10 minutes of unplanned shopping time in a supermarket. From the central limit theorem, what can you say about the probability distribution of x, the average amount spent by these customers due to impulse buying? What are the mean and standard deviation of the x distribution? The sampling distribution of x is approximately normal with mean μx = 24 and standard error σx = $0.15.The sampling distribution of x is approximately normal with mean μx = 24 and standard error σx = $1.16. The sampling distribution of x is not normal.The sampling distribution of x is approximately normal with mean μx = 24 and standard error σx = $9. Is it necessary to make any assumption about the x distribution? Explain your answer. It is necessary to assume that x has a large distribution.It is necessary to assume that x has an approximately normal distribution. It is not necessary to make any assumption about the x distribution because μ is large.It is not necessary to make any assumption about the x distribution because n is large. (b) What is the probability that x is between $22 and $26? (Round your answer to four decimal places.) (c) Let us assume that x has a distribution that is approximately normal. What is the probability that x is between $22 and $26? (Round your answer to four decimal places.)

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

Let x represent the dollar amount spent on supermarket impulse buying in a 10-minute (unplanned) shopping interval. Based on a newspaper article, the mean of the x distribution is about $24 and the estimated standard deviation is about $9.

(a)

Consider a random sample of n = 60 customers, each of whom has 10 minutes of unplanned shopping time in a supermarket. From the central limit theorem, what can you say about the probability distribution of x, the average amount spent by these customers due to impulse buying? What are the mean and standard deviation of the x distribution?

The sampling distribution of x is approximately normal with mean μ_x = 24 and standard error σ_x = $0.15.The sampling distribution of x is approximately normal with mean μ_x = 24 and standard error σ_x = $1.16. The sampling distribution of x is not normal.The sampling distribution of x is approximately normal with mean μ_x = 24 and standard error σ_x = $9.

Is it necessary to make any assumption about the x distribution? Explain your answer.

It is necessary to assume that x has a large distribution.It is necessary to assume that x has an approximately normal distribution. It is not necessary to make any assumption about the x distribution because μ is large.It is not necessary to make any assumption about the x distribution because n is large.

(b)

What is the probability that x is between $22 and $26? (Round your answer to four decimal places.)

(c)

Let us assume that x has a distribution that is approximately normal. What is the probability that x is between $22 and $26? (Round your answer to four decimal places.)

(d)

In part (b), we used x, the average amount spent, computed for 60 customers. In part (c), we used x, the amount spent by only one customer. The answers to parts (b) and (c) are very different. Why would this happen?

The sample size is smaller for the x distribution than it is for the x distribution.The mean is larger for the x distribution than it is for the x distribution. The standard deviation is smaller for the x distribution than it is for the x distribution.The standard deviation is larger for the x distribution than it is for the x distribution.The x distribution is approximately normal while the x distribution is not normal.

In this example, x is a much more predictable or reliable statistic than x. Consider that almost all marketing strategies and sales pitches are designed for the average customer and not the individual customer. How does the central limit theorem tell us that the average customer is much more predictable than the individual customer?

The central limit theorem tells us that the standard deviation of the sample mean is much smaller than the population standard deviation. Thus, the average customer is more predictable than the individual customer.The central limit theorem tells us that small sample sizes have small standard deviations on average. Thus, the average customer is more predictable than the individual customer.

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.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 7 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Discrete Probability Distributions$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.