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nexus9112
1 month ago
15

The owner of a local health food store recently started a new ad campaign to attract more business and wants to test whether ave

rage daily sales have increased. Historically average daily sales were approximately $2,700. After the ad campaign, the owner took another random sample of forty-five days and found that average daily sales were $2,984 with a standard deviation of approximately $585. Calculate the upper bound of the 95% range of likely sample means for this one-sided hypothesis test using the CONFIDENCE.NORM function.
Mathematics
1 answer:
lawyer [12.5K]1 month ago
8 0

Answer:

The upper bound of the confidence interval is 3127 $/day.

Step-by-step explanation:

With the new sample, we can determine the one-sided 95% confidence interval.

For this interval (one sided, with 95% confidence), z=1.64.

The total number of observations (n) is 45 days.

The average is 2984 and the standard deviation is 585.

We can estimate the upper limit of the confidence interval as

UL=X+z*s/\sqrt{n} \\UL = 2984 + 1.64*585/\sqrt{45}=2984+ 959.4/6.708=2984+143=3127

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