Concept explainers
a.
Find the population
a.

Explanation of Solution
Here, the sample mean is provided and there is no information about the population mean of daily sales for Bun-and-Run franchise.
b.
Find the best estimate of the population mean.
b.

Answer to Problem 1SR
The best estimate of the population mean is $20,000.
Explanation of Solution
Calculation:
The sample mean is the point estimate of the population mean. Moreover, the sample statistic gives the best estimate for the population parameter.
Here, the sample mean is $20,000. Hence, the point estimate of the population mean is $20,000. That is, the best estimate for the population mean is the sample mean, which is denoted as
c.
Find the 95% confidence interval for the population mean of daily sales.
c.

Answer to Problem 1SR
The 95% confidence interval for the population mean of daily sales is
Explanation of Solution
Calculation:
Step-by-step procedure to obtain the confidence interval using MINITAB software is given below:
- Choose Stat > Basic Statistics > 1-Sample Z.
- In Summarized data, enter the
sample size as 40 and mean as 20,000. - In Standard deviation, enter 3,000.
- Check Options, enter Confidence level as 95.
- Choose Mean ≠ Hypothesized mean in alternative.
- Click OK in all dialogue boxes.
Output using MINITAB software is given below:
From the MINITAB output, the 95% confidence interval for the population mean of daily sales is
d.
Interpret the confidence interval in Part (c).
d.

Explanation of Solution
Interpretation:
There is 95% confidence that the population mean of daily sales lies between $19,070 and $20,930.
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Chapter 9 Solutions
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