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Consumers can purchase nonprescription medications at food stores, mass merchand

ID: 3063009 • Letter: C

Question

Consumers can purchase nonprescription medications at food stores, mass merchandise stores such as Target and Wal-Mart, or pharmacies. About 45% of consumers make such purchases at pharmacies. What accounts for the popularity of pharmacies, which often charge higher prices?

A study examined consumers' perceptions of overall performance of the three types of stores, using a long questionnaire that asked about such things as "neat and attractive store," "knowledgeable staff," and "assistance in choosing among various types of nonprescription medication." A performance score was based on 27 such questions. The subjects were 215 people chosen at random from the Indianapolis telephone directory. Here are the means and standard deviations of the performance scores for the sample.

We do not know the population standard deviations, but a sample standard deviation s from so large a sample is usually close to . Use s in place of the unknown in this exercise.

(a) What population do you think the authors of the study want to draw conclusions about?

the American publicsick people    consumerspharmaciescitizens of Indianapolis


What population are you certain they can draw conclusions about?

consumer

pharmacies    

the American public

sick people

citizens of Indianapolis


(b) Give 99% confidence intervals for the mean performance for each type of store. (Round your answers to three decimal places.


(c) Based on these confidence intervals, are you convinced that consumers think that pharmacies offer higher performance than the other types of stores? (In Chapter 12, we will study a statistical method for comparing means of several groups.)

Yes, the pharmacy interval is well above the others.

Yes, the mass merchandiser interval is well above the others.    

Yes, the food store interval is well below the others.

No, there is no clear evidence of a significant difference.

Store type x s Food stores 18.68 24.54 Mass merchandisers 32.57 33.13 Pharmacies 48.8 35.38

Explanation / Answer

We use MINITAB to solve this question.

One-Sample T

N Mean StDev SE Mean 99% CI
215 18.68 24.54 1.67 (14.330, 23.030)

One-Sample T

N Mean StDev SE Mean 99% CI
215 32.57 33.13 2.26 (26.698, 38.442)

One-Sample T

N Mean StDev SE Mean 99% CI
215 48.80 35.38 2.41 (42.529, 55.071)

a)

The authors draw conclusions about of the population of the study is consumers' perceptions of overall performance of the three types of stores.

b)

99% confidence intervals for the mean performance for each type of store are,

c)

No,Based on these confidence intervals, We do not convinced that consumers think that pharmacies offer higher performance than the other types of stores because there is no clear evidence of a significant difference.

Food stores
(14.330, 23.030 ) Mass merchandisers
( 26.698 , 38.442 ) Pharmacies ( 42.529 , 55.071 )
  
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