A Coffee Shop Franchise Owner Is Looking at Two Possible

question 66

Short Answer

A coffee shop franchise owner is looking at two possible locations for a new shop. To help make a decision, he looks at the number of pedestrians that go by each of the two locations in one-hour segments. At location A, counts are taken for 35 one-hour units, with a mean number of pedestrians of 421 and a sample standard deviation of 122. At the second location (B), counts are taken for 50 one-hour units, with a mean number of pedestrians of 347 and a sample standard deviation of 85. Assume the two population variances are not known but are equal. Calculate the pooled estimate of σ².

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Definitions:

Empirical Rule

A rule that can be used to compute the percentage of data values that must be within one, two, and three standard deviations of the mean for data that exhibit a bell-shaped distribution.

Sample Space

The entire set of possible outcomes in a probability experiment or situation.

Sample Point

A single outcome from a statistical experiment.

Event

An occurrence or result that can be defined within a certain context, particularly in probability and statistics.