BUSI 230 Week 6 Review and Exam Liberty University Complete Answers

BUSI 230 Week 6 Review and Exam Liberty University Complete Answers

The below shown questions is just one version sample.
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Let x represent the dollar amount spent on supermarket impulse buying in a 10-minute (unplanned) shopping interval. Based on a certain article, the mean of the x distribution is about $47 and the estimated standard deviation is about $9.

(a) Consider a random sample of n = 80 customers, each of whom has 10 minutes of unplanned shopping time in a supermarket. From the central limit theorem, what can you say about the probability distribution of x, the average amount spent by these customers due to impulse buying? What are the mean and standard deviation of the x distribution?

Is it necessary to make any assumption about the x distribution? Explain your answer.

(b) What is the probability that x is between $45 and $49? (Round your answer to four decimal places.)

(c) Let us assume that x has a distribution that is approximately normal. What is the probability that x is between $45 and $49? (Round your answer to four decimal places.)

(d) In part (b), we used x, the average amount spent, computed for 80 customers. In part (c), we used x, the amount spent by only one customer. The answers to parts (b) and (c) are very different. Why would this happen?

Answer

In this example, x is a much more predictable or reliable statistic than x. Consider that almost all marketing strategies and sales pitches are designed for the average customer and not the individual customer. How does the central limit theorem tell us that the average customer is much more predictable than the individual customer?

A new muscle relaxant is available. Researchers from the firm developing the relaxant have done studies that indicate that the time lapse between administration of the drug and beginning effects of the drug is normally distributed, with mean μ = 38 minutes and standard deviation σ = 5 minutes.

(a) The drug is administered to one patient selected at random. What is the probability that the time it takes to go into effect is 35 minutes or less? (Round your answer to four decimal places.)

(b) The drug is administered to a random sample of 10 patients. What is the probability that the average time before it is effective for all 10 patients is 35 minutes or less? (Round your answer to four decimal places.)

(c) Comment on the differences of the results in parts (a) and (b).

The probability in part (b) is part (a) because the is for the x distribution.

The personnel office at a large electronics firm regularly schedules job interviews and maintains records of the interviews. From the past records, they have found that the length of a first interview is normally distributed, with mean μ = 36 minutes and standard deviation σ = 6 minutes. (Round your answers to four decimal places.)

(a) What is the probability that a first interview will last 40 minutes or longer?

(b) Eighteen first interviews are usually scheduled per day. What is the probability that the average length of time for the eighteen interviews will be 40 minutes or longer?