[41(8) The Banks Brothers Men\'s Clothiers, a regional chain of stores, is consi

Question

[41(8) The Banks Brothers Men's Clothiers, a regional chain of stores, is considering introducing a new line of designer clothes into some or all of the following districts. The marketing research staff reports that the product has been profitable whenever it is introduced into a district containing 500,000 or more households whose gross annual purchase of men's clothing amounts to at least $350. Data on the three districts ane shown below. Annual Purchases Standard District Ohio St. Lawrence 1,000,000 365 340 310 20 Number of Households Mean Median Mode Deviation 1.250,000 377 360 358 38 Yukon ,350,000 353 352 350 40 (a) In your opinion, is Yukon a good candidate for a new store? Substantiate your answer. (b) In your opinion, is St. Lawrence a good candidate for a new store? Substantiate your answer

Explanation / Answer

From the given information,

it is observed that all three districts have mean > median > mode. Therefore, the given data is positively skewed.

From the known information,

A data which has less standard deviation or variance then that data is the good estimator.

(a)

Yukon is not a good candiate for new store because it has the standard deviation 40. Which is greater than the St. Lawrence standard deviation, 20 and Ohio standard deviation, 30.

Therefore,yukon is not a good candiate for new store.

(b)

St. Lawrence is a good candiate for new store because it has the standard deviation 20. Which is less than the Yukon standard deviation, 40 and Ohio standard deviation, 30.

Therefore,St. Lawrence is a good candiate for new store.

In one standard deviation limits, St. Lawrence is a good candiate for new store.

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