Consumers can purchase nonprescription medications at food stores, mass merchand

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 214 people chosen at random from the Indianapolis telephone directory. Here are the means and standard deviations of the performance scores for the sample. Store type Food stores 18.32 24.88 Mass merchandisers 32.15 33.67 48.88 35.66 We do not know the population standard deviations, but a sample standard deviation s from so large a sample is usually close to o. 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? O citizens of Indianapolis O the American public O sick people What population are you certain they can draw conclusions about? O citizens of Indianapolis

Explanation / Answer

a)

The authors of the study want to draw the conclusions abour consumers

They can draw conclusions about Pharmacies

b)

1) Food stores

CI for = 98%

n = 214

mean = 18.32

z-value of 98% CI = 2.3263

std. dev. = 24.88

SE = std.dev./sqrt(n) = 1.70076

ME = z*SE = 3.95656

Lower Limit = Mean - ME = 14.36344

Upper Limit = Mean + ME = 22.27656

98% CI (14.3634 , 22.2766 )

2)

Mass merchandisers

CI for = 98%

n = = 214

mean 32.15

z-value of 98% CI = 2.3263

std. dev. = 33.67

SE = std.dev./sqrt(n) = 2.30163

ME = z*SE = 5.35440

Lower Limit = Mean - ME = 26.79560

Upper Limit = Mean + ME = 37.50440

98% CI (26.7956 , 37.5044 )

3)

Pharmacies

CI for = 98%

n = 214

mean = 48.88

z-value of 98% CI = 2.3263

std. dev. = 35.66

SE = std.dev./sqrt(n) = 2.43767

ME = z*SE = 5.67086

Lower Limit = Mean - ME = 43.20914

Upper Limit = Mean + ME = 54.55086

98% CI (43.2091 , 54.5509 )

c)

Yes, the pharmacy interval is well above the otheres

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