A catering company is thinking of offering a lunch wagon in a high rise building

Question

A catering company is thinking of offering a lunch wagon in a high rise building. To determine the potential market, they want to know the total number of lunches that are brought to the workplace. A study is conducted to estimate the average number of brown-bag lunches (i.e. pack a lunch) per month for workers in a high-rise office building. A simple random sample of 30 people is selected from the 400 in the building. While conducting interviews, the researcher finds that some of the individuals are not appropriate for study because they are part time workers and only work mornings or afternoons. Of the 30 sampled, 25 are appropriate for the study. The data collected for the 25 people resulted in a mean of 240/25 = 9.6 days per month and a standard deviation of 5.24 (variance = 27.4576). Estimate the total number of brown bag lunches for a month in this high-rise. Place a bound on the error of estimation.

Explanation / Answer

Since

Sample average =9.6

Since total number of peoples=400

Since sample average is estimate of population average

Also total number =400*estimate of population mean

=400*9.6=3840

SD(total) =SD*Sqrt(400)=5.24*20=104.8

Hence error +/- 104.8

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.