A Company Has Recorded Data on the Weekly Sales for Its

question 48

Essay

A company has recorded data on the weekly sales for its product (y) and the unit price of the competitor's product (x). The data resulting from a random sample of seven weeks follows. Use Excel to a. Compute a $95 \%$ confidence interval for expected sales for all weeks when the competitor's price is $0.30$ .
b. Compute a $95 \%$ prediction interval for sal es for a week when the competitor's price is $0.30$ .
$\begin{array}{lll}\text { Week } & \text { Price } & \text { Sales } \\\hline 1 & 0.33 & 20 \\2 & 0.25 & 14 \\3 & 0.44 & 22 \\4 & 0.40 & 21 \\5 & 0.35 & 16 \\6 & 0.39 & 19 \\7 & 0.29 & 15\end{array}$ ​

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Definitions:

Empirical Rules

Statistical rules that allow for the determination of probability within a normal distribution, stating percentages of data that lie within certain standard deviations from the mean.

Standard Deviations

Measures of how spread out the numbers in a dataset are, indicating the degree of variation from the mean.

Observations

Individual data points or measurements collected during an experiment or survey.

Negatively Skewed

A distribution shape where the tail is longer on the left side of the distribution's peak, indicating that the bulk of the values are towards the right.