The Owner of a Pet Store Is Trying to Decide

question 20

Essay

The owner of a pet store is trying to decide whether to discontinue selling specialty clothes for pets. She suspects that only 4% of the customers buy specialty clothes for their pets and thinks that she might be able to replace the clothes with more profitable items. Before making a final decision, she decides to keep track of the total number of customers for a day and whether they purchase specialty clothes.
a. The owner had 275 customers that day. Assuming this was a typical day for her store, what would be the mean and standard deviation of the number of customers who buy specialty clothes for their pet each day?
b. Surprised by the high number of customers who purchased specialty pet clothing that day, the owner decided that her 4% estimate must have been too low. How many clothing sales would it have taken to convince you? Justify your answer.

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Definitions:

Ending Work

This term could refer to the final stages of a work process or project, but without more context, it is not clearly identifiable as a standard key term.

Cost System

The method or process by which the costs of products or services are calculated and tracked within an organization.

Completed

Refers to a state or condition where a process, project, or item has been finished entirely and is ready for use or sale.

Transferred Out

Goods or products that have been moved from one stage of production to another or from one department to another within the manufacturing process.