The Owner of a Small Convenience Store Is Trying to Decide

question 28

Essay

The owner of a small convenience store is trying to decide whether to discontinue selling magazines. He suspects that only 5% of the customers buy a magazine and thinks that he might be able to use the display space to sell something more profitable. Before making a final decision he decides that for one day he'll keep track of the number of customers and whether or not they buy a magazine.
-He had 280 customers that day. Assuming this day was typical for his store, what would be the mean and standard deviation of the number of customers who buy magazines each day?

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Definitions:

Keiretsu

A network of interlinked Japanese companies, sharing mutual interests and relationships, often linking manufacturers with suppliers, distributors, and banks.

Sherman Act

A landmark federal statute in the field of United States antitrust law passed in 1890 which prohibits monopolistic practices and promotes competition.

Identifying

The act of recognizing or establishing the identity of a person or thing.

The Courts

The judicial institutions responsible for interpreting the law, delivering justice, and resolving disputes.