Mean for a sample population
150 + word count
1. In business, sometimes it is necessary to estimate a mean for
a sample or population. We can do this with a high level of confidence for any
dataset and create an interval in which we think the mean of all datapoints in
the sample will fall within.
For example, we may want to find what interval all customer
purchases ($) will fall within. For a restraunt maybe it would be good to know
the interval that all 2-customer table bills will fall within. We can use this
information to make better business decisions. There are three commonly used
confidence levels in business statistics. 90%, 95%, and 99%. To simplify this,
we will all calculate our confidence intervals at the 95% confidence levels.
Please provide an example of when we would use the confidence
interval to assist in making business decisions. Display how you would
calculate and then interpret that. There are countless examples in Chapter 5
for you to reference. I look forward to a great discussion.
Tutor Answer
Europe(Continental)