The mean and standard deviation of single sales prices for a specific type of golf club on Ebay are $147 and $11 respectively. We are going to sell 99 of these clubs on Ebay in individual and independent auctions. If the sales follow the historical data, what’s the maximum revenue we should expect, using a 98% CI as a basis?
a. |
~ $14,585 |
|
b. |
~ $14,808 |
|
c. |
~ $17,295 |
|
d. |
~ $14,835 |
|
e. |
~ $21,275 |
In case of revenue
Mean = 147*99 = 14553
We need to construct the 98% confidence interval for the population mean μ. The following information is provided:
Sample Mean | 14553 |
Population Standard Deviation | 1089 |
Sample Size | 99 |
The critical value for α=0.02 is z_c = 2.326. The corresponding confidence interval is computed as shown below:
Upper = 14807.616
upper = $14808
The mean and standard deviation of single sales prices for a specific type of golf club...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...
JOHNSON & JOHNSON AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars and Shares in Millions Except Per Share Amounts) (Note 1)* 2016 71,890 21,789 50.101 20,067 9.143 29 Sales to customers Cost of products sold Gross profit Selling, marketing and administrative expenses Research and development expense In-process research and development Interest income Interest expense, net of portion capitalized (Note 4) Other (income) expense, net Restructuring (Note 22) Eamings before provision for taxes on income Provision for taxes on income (Note 8)...