A Statistician Employed by a Consumer Testing Organization Reports That

question 108

Short Answer

A statistician employed by a consumer testing organization reports that at 95% confidence he has determined that the true average content of the Uncola soft drinks is between 11.7 to 12.3 ounces. He further reports that his sample revealed an average content of 12 ounces, but he forgot to report the size of the sample he had selected. Assuming the standard deviation of the population is 1.28, determine the size of the sample.

---

Definitions:

Pure Play Method

A valuation method that compares a company to others within the same industry or sector with a single focus or product line.

Firm's Cost of Capital

The minimum return that a company must earn on its investments to maintain its market value and satisfy its creditors and investors.

Specific Division

A distinct business unit within a larger organization, often focused on a particular product line or market segment.

Risk Averse Manager

A manager who prioritizes minimizing risks in decision-making and strategy, favoring safer investments with potentially lower returns.