Explore BrainMass

Explore BrainMass

    Confidence Interval

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Norm Dickins the town pharmacist is interested in obtaining a loan to expand his business. He will get a better interest rate if he can reasonably demonstrate that his near-term monthly revenues will be between $10,000 and $15,000. He doesn't know the exact level of sales to expect over the next several months, but based on past experience, he knows it should be around $13,000. He also knows that his sales vary by about $2,500 from month to month. What is the probability that his store will generate the revenue required for him to obtain a favorable loan rate?

    © BrainMass Inc. brainmass.com March 4, 2021, 5:47 pm ad1c9bdddf
    https://brainmass.com/statistics/confidence-interval/11140

    Solution Preview

    This is a confidence interval problem:
    <br>His average revenue is 13000, and standard deviation is 2500
    <br>Then we are to find the probability that next ...

    Solution Summary

    The solution addresses Norm Dickins the town pharmacist is interested in obtaining a loan to expand his business. He will get a better interest rate if he can reasonably demonstrate that his near-term monthly revenues will be between $10,000 and $15,000. He doesn't know the exact level of sales to expect over the next several months, but based on past experience, he knows it should be around $13,000. He also knows that his sales vary by about $2,500 from month to month. What is the probability that his store will generate the revenue required for him to obtain a favorable loan rate?

    $2.49

    ADVERTISEMENT