(Steps Shown) According to Ben Jerry's they are "always on the lookout for the next best way to experience our ice cream." One of their creations is the
Question: According to Ben & Jerry's they are "always on the lookout for the next best way to experience our ice cream." One of their creations is the BRRR-ito. Suppose that B&J wants to estimate the average number of BRRR-itos sold across all U.S. locations.
- What is the parameter of interest? The parameter of interest is the average number of BRRR - itos sold across all U.S. B&J locations
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A SRS is used to sample 1000 locations, finding that these locations sell a combined total of 47,000 BRRR-itos. The SD for number of BRRR-itos sold at each location was calculated as 100. Calculate an estimate for the parameter along with a 95% confidence interval.
Average number of BRRR-itos = 47 Confidence Interval = C.I. = (40.68, 53.32) - Would you expect a 99% confidence interval to be larger or smaller? Explain. A larger C.I. of 99% should be larger, because the z-score would increase the width of the interval
- Provide the interpretation for your confidence interval from part b. We’re 95% confident that the average number of sold BRRR-itos in each B&J location falls within (40.68, 53.32)
- Suppose that B&J included only samples from stores in California. Would the confidence interval calculated previously have the same interpretation? Explain . If the samples are from CA, then we’re 95% confident that the average number of sold BRRR-itos in California’s B&J falls within (40.68, 53.32). However, we don’t have information to make a claim about the average number of sold BRRR-itos at the national level.
- Suppose that B&J use a different sample to calculate a 99% confidence interval: 46 f 8. They conclude that they only need to keep materials for 55 BRRR-itos at each store, since there is only a 0.5% chance that a store sells more than 54 BRRR-itos. Do you agree with B&J's interpretation? Provide an explanation . Disagree. We don’t know what’s the distribution of the number of BRRR-itos sold in B&J locations. The confidence interval is for the average number of BRRR-itos
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