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Stats 5 Scenario Problem

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Question;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

 

Paper#62078 | Written in 18-Jul-2015

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