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Ebook Essentials of modern business statistics (3th edition): Part 2

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Ebook Essentials of modern business statistics (3th edition): Part 2

CHAPTER 8Interval EstimationCONTENTSSTATISTICS IN PR ACTICE:FOOD LION8.1POPULATION MEAN: Ơ KNOWNMarein of Error and theEstimateUsing ExcelPractical Al

Ebook Essentials of modern business statistics (3th edition): Part 2llvice8.2POPULATION MEAN: Ơ UNKNOWNMargin of Error and the Interval EstimateUsing ExcelPractical AdviceUsing a Small SampleSummary of IntervalEstimati

on Procedures8.3DETERMINING HIESAMPLE SIZE8.4FOPULA'I ION I’ROl’ORI IONUsing ExcelDetermining the Sample Si/echapter 8 Interval Estimation309STATISTIC Ebook Essentials of modern business statistics (3th edition): Part 2

S in PRACTICEFOOD LION*SALISBURY, NORTH CAROLINAFounded in 1957 as Food Town, hxxl Lion is one of the largest supermarket chains in die United Slates

Ebook Essentials of modern business statistics (3th edition): Part 2

with 1200 stores in 11 Soullieaslcm and Mid-Allantic stales. The company sells more than 24.000 different products and otfeR nationally and region all

CHAPTER 8Interval EstimationCONTENTSSTATISTICS IN PR ACTICE:FOOD LION8.1POPULATION MEAN: Ơ KNOWNMarein of Error and theEstimateUsing ExcelPractical Al

Ebook Essentials of modern business statistics (3th edition): Part 2 company maintains its low' price leadership and quality assurance through operating efficiencies such as standard store formats, innovative wrarebous

e design, energy-efficient facilities, aixl data synchnxii/alHxi with suppliers. I ood Lion looks to a future of continued innovation, growth, price l Ebook Essentials of modern business statistics (3th edition): Part 2

eadersliip. and service to its customers.Being in an invenlixy -intense business. Fixxl 1 -iixi nude lite decision to adopt Ute Lil o (last in. fust o

Ebook Essentials of modern business statistics (3th edition): Part 2

ut) meted of inventory valuation. This mellxxl matches current costs against current revemtes. which minimizes lite effect of radical price changes on

CHAPTER 8Interval EstimationCONTENTSSTATISTICS IN PR ACTICE:FOOD LION8.1POPULATION MEAN: Ơ KNOWNMarein of Error and theEstimateUsing ExcelPractical Al

Ebook Essentials of modern business statistics (3th edition): Part 2tablishes a LU o index for each of seven in venlixy pls: Grocery. P;qvr/H

id Beer/Wine. Fix-example, a LU o index of 1.008 tor the Grocery pool would in dicalc that the cixnpany's grocery inventory value at current costs ref Ebook Essentials of modern business statistics (3th edition): Part 2

lects a 0.8% increase due to inflation over the most recent one-yesr period.AI JR) index (breach inventory p(X)l requires that they earend inventoty c

Ebook Essentials of modern business statistics (3th edition): Part 2

ount for each product be valued at die cunent year-end cost and al the preceding year-end cost. To avoid excessive time and expense associated with co

CHAPTER 8Interval EstimationCONTENTSSTATISTICS IN PR ACTICE:FOOD LION8.1POPULATION MEAN: Ơ KNOWNMarein of Error and theEstimateUsing ExcelPractical Al

Ebook Essentials of modern business statistics (3th edition): Part 2 to Kailh Cixtoingbam, Tax Director, and Bobby Harkey, StoH Tax Accountant, at Food lion for providing thii Stortntics in Practice.in all 1200 store l

ocations. Food Lion selects a random sample of 50 Stores. Year-end physical inventories are taken in each of tile sample stores, The current year and Ebook Essentials of modern business statistics (3th edition): Part 2

preceding year costs for each item are ten used to construct die required LU o indexes for each inventory ptx)l.I or a recent year, (lie sample estima

Ebook Essentials of modern business statistics (3th edition): Part 2

te of die L11 o index for the Health & Beauty Auk inventory jxxd was 1.015. Using a 95% confidence level. Food Lion computed a matgin of error of .006

CHAPTER 8Interval EstimationCONTENTSSTATISTICS IN PR ACTICE:FOOD LION8.1POPULATION MEAN: Ơ KNOWNMarein of Error and theEstimateUsing ExcelPractical Al

Ebook Essentials of modern business statistics (3th edition): Part 2 of precision W'as judged to he very good.In this chapter you will learn how to compute the margin of error associated with sample estimates. You will

also leam how Io use this information Io construct and interpret interval estimates of a population mean and a population proportion.In Chapter 7, w Ebook Essentials of modern business statistics (3th edition): Part 2

e stated that a point estimator is a sample statistic used to estimate a population parameter. For instance, the sample mean X is a point estimator of

Ebook Essentials of modern business statistics (3th edition): Part 2

the population mean u and the sample proportion p is a point estimator of the population proportion p. Because a point estimator cannot be expected t

CHAPTER 8Interval EstimationCONTENTSSTATISTICS IN PR ACTICE:FOOD LION8.1POPULATION MEAN: Ơ KNOWNMarein of Error and theEstimateUsing ExcelPractical Al

Ebook Essentials of modern business statistics (3th edition): Part 2error, to the point estimate. The general form of an interval estimate is as follows:

CHAPTER 8Interval EstimationCONTENTSSTATISTICS IN PR ACTICE:FOOD LION8.1POPULATION MEAN: Ơ KNOWNMarein of Error and theEstimateUsing ExcelPractical Al

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