Confidence Interval
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 December 24, 2021, 4:51 pm ad1c9bdddfhttps://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?