What is the probability to get a sample average of 26 or more customers if the manager had not offered the discount?

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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A small hair salon in Denver, Colorado, averages about 20 customers on weekdays with a standard deviation of 7. It is safe to assume that the underlying distribution is normal. In an attempt to increase the number of weekday customers, the manager offers a $4 discount on 6 consecutive weekdays. She reports that her strategy has worked because the sample mean of customers during this 6-weekday period jumps to 26. (You may find it useful to reference the z table.)

a. What is the probability to get a sample average of 26 or more customers if the manager had not offered the discount? (Do not round intermediate calculations.  Round final answer to 4 decimal places.)

 



b. Do you feel confident that the manager’s discount strategy has worked?

multiple choice

  • No, there is good chance (more than 5%) of getting 26 or more customers without the discount.
  • No, there is only a small chance (less than 5%) of getting 26 or more customers without the discount.
  • Yes, there is good chance (more than 5%) of getting 26 or more customers without the discount.
  • Yes, there is only a small chance (less than 5%) of getting 26 or more customers without the discount.
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