A marketing researcher wants to estimate the mean savings ($) realized by shoppe

Question

A marketing researcher wants to estimate the mean savings ($) realized by shoppers who showroom. Showrooming is the practice of inspecting products in retail stores and then purchasing the products online at a lower price. A random sample of 49 shoppers who recently purchased a consumer electronics item online after making a visit to a retail store yielded a mean savings of $57 and a standard deviation of $52. Construct a 95% confidence interval estimate for the mean savings for all showroomers who purchased a consumer electronics item.

Explanation / Answer

x' = 57 s = 52 n = 49

z for 95% = 1.96

Let the interval be (a,b).

a = 57 - 1.96 * 52 / 49

= 42.44.

b = 57 + 1.96 * 52 / 49

= 71.56.

The interval is (42.44, 71.56).

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