Question

Companies that sell groceries over the internet are called e-grocers. Customers enter their orders, pay by credit card and receive delivery by truck. A potential e-grocer analyzed the market and determined that the average order would have to exceed $85 if the e-grocer were to be profitable. To determine whether an e-grocery would be profitable in one large city, she offered the service and recorded the size of the order for a random sample of customers. The data file egrocer, is in our StatCrunch group.

a. Produce the summary statistics.

b. Produce a histogram of the data. Comment on the normality of the distribution.

c. Find a 90% confidence interval for the mean amount that all customers in this city would spend for an order. Interpret your interval.

d. Can we infer from these data that an e-grocery would be profitable in this city? Use ? = 0.01.

You must use StatCrunch to generate the summary statistics, a histogram, endpoints for a confidence interval, and a test-statistic and a p-value for the hypothesis test. Turn in your StatCrunch graphs and tables together with your interpretations. The numbers are below .

Orders
83.3
91.13
78.65
84.25
91.87
86.14
76.97
111.59
90.06
101.31
117.58
104.91
148.69
68.21
97.77
88.53
86.7
88.65
120.23
114.18
112.94
102.41
75.76
119.43
88.04
88.76
87.34
113.6
92.36
91.32
75.06
84.5
61.77
95.6
77.56
71.73
86.69
96.4
100.28
118.78
78.46
101.05
76.88
86.51
84.98
50.74
95.9
108.1
73.28
72.18
102.09
73.4
64.66
59.43
73.65
79.45
101.94
88.61
95.93
94.52
102.08
105.82
87.81
95.38
93.82
72.04
93.91
93.33
50.55
68.66
95.69
75.59
120.18
69.77
53.73
107.1
72.51
91.79
96.3
82.15
100.46
77.63
66.69
84.07
97.7

Answer 1

(a) The descriptive statistics for the given information is,

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(b) The Histogram of the given data is,

From the above Histogram, the data is approximately symmetric and the data follows approximately normal distribution.

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(c)

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(d)