Stats 5 Scenario Problem

Stats 5 Scenario Problem

Which scenario (assuming normal distribution) should you select if you want at 95% confidence interval a 16% probability of $2.75 profit per day? Scenario 1 involved setting the stock level of computers to 20. Over a sample of 1000, this setting produced an average profit of $2.00 per day with zero standard deviation. Scenario 2 involved setting the stock level to 25. Over a sample of 1000, this setting produced an average profit of about $2.35 per day with standard deviation of about $0.40. Scenario 3 involved setting the stock level to 30. Over a sample of 1000, this setting produced an average profit of about $2.16 per day with standard deviation of about $1.12. Scenario 4 involved setting the stock level to 35. Over a sample of 1000, this setting produced an average profit of about $1.29 per day with standard deviation of about $1.72. Scenario 5 involved setting the stock level to 40. Over a sample of 1000, this setting produced an average loss of about $0.04 per day with standard deviation of about $1.99?


Comments are closed.