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Suppose you are a consultant to a fast food chain. The fast food chain is interested in measuring the population variance in the number of customers it has on a daily basis in all its stores in the U.S. However, it is limited in its ability to track this number across all stores and has to select a sample. Think critically about the following questions:
1. There are two estimators for the population variance with different levels of bias and variance. Explain how you would go about choosing between these two estimators.
2. You are interested in coming up with a 95% confidence interval for the population variance. How would you go about deciding the number of outlets to sample?
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Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.
Problems on Sampling Variability and Standard Error and Confidence Intervals
Estimate the population mean
Conduct a marketing experiment in which students are to taste one of two different brands of soft drink
Find out the probability
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