1. If next Thursday there are 500 employees instead of 300, will the probability
ID: 3060982 • Letter: 1
Question
1. If next Thursday there are 500 employees instead of 300, will the probability of a profit increase or decrease?(Hint: Find the probability that the sample mean expense is less than $15 when there are 500 customers.)
a) 0
b) Same probability
c) Probability of a profit will decrease when n=500
d) Probability of a profit will increase when n=500
2. What if the mean expense per customer were $11 instead of $14.95, will the probability of a profit increase or decrease?
a) 0.5
b) Same probability
c) Probability of a profit will decrease when mean expense per customer were $11
d) Probability of a profit will increase when mean expense per customer were $11
Explanation / Answer
1. As 15 lies to the right of mean expenses, with an increase in n, the Z score will become more positive and area to the left of Z score will increase.
Hence, Answer: d) Probability of a profit will increase when n=500
2. With a decrease in population mean, Z score will increase, which will increase the probability of profitability.
Answer: d) Probability of a profit will increase when mean expense per customer were $11
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