Question: in Practicing the Basics on page 385

A company that sells its products through mail order catalogs wants information about the success of its most recent catalog. The company decides to estimate the mean dollar amount of the items ordered from those who received the catalog. For a random sample of 100 customers from their files, only 5 made an order so 95 of the response values were 0$. The overall mean of all 100 orders was $10, with a standard deviation of $10.

1. Is it plausible that the population distribution is normal? Explain and discuss how much this affects the validity of a confidence interval of the mean. It could be normal. According to the text when you have a large random sample this is not an issue. For the example given for this (8.015 , 11.984) are the confidence levels for this problem. There are outliers for this problem as we don’t know how many customers made orders prior to when this sample was taken. (this was my answer is this correct?)
2. Find a 95% confidence interval for the mean dollar order for the population of all customers who received this catalog. Normally, the mean of their sales per catalog is about $15. Can we conclude that it declined with this catalog.
   1. With the new information the 95% CI is now (13.016 to 16.984) this is an increase, therefore we can conclude that there was a decline in a previous catalog .( Is this correct?)

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