Prompt : The owners of a small mail order business want to estimate their averag

Question

Prompt: The owners of a small mail order business want to estimate their average annual sales. They randomly select 100 sales from their first quarter to analyze. For the samples, the average amount spent was $235.12 with a standard error of $12.41.

Response Parameters

What conditions, or assumptions, should be verified before using the sample values to estimate the population mean?

If these conditions are satisfied, what is the probability that you would get a sample with a sample mean of $230.00 or less?

If they expect to have 50,000 sales this year, what is their expected value of the total sales for the year?

Explanation / Answer

conditions are that data sample should be random in nature and normality assumption should prevail as sample size is higher then 30 from central limit theorum

here std error of mean =1.241

P(X<230)=P(z<(230-235.12)/12.41)=P(Z<-0.4126)=0.3400 (please reply about this cause std error =std dev/(n)1/2

for one ale expected value =235.12

hence expectedvalue for 50000 sales =235.12*50000=$11756000

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