Question

The Bun-and-Run is a franchise fast-food restaurant located in the Northeast specializing in half-pound hamburgers, fish sandwiches, and chicken sandwiches. Soft drinks and French fries also are available. The Marketing Department of Bun-and-Run Inc. reports that the distribution of daily sales for their restaurants follows the normal distribution and that the population standard deviation is $3,000. A sample of 40 franchises showed the mean daily sales to be $20,000. a) What is the population mean of daily sales for Bun-and-Run franchises? b) What is the best estimate of the population mean? What is this value called? c) Develop a 95% confidence interval for the population mean of daily sales. d) Interpret the confidence interval.

Answer 1

Answer:

The Bun-and-Run is a franchise fast-food restaurant located in the Northeast specializing in half-pound hamburgers, fish sandwiches, and chicken sandwiches. Soft drinks and French fries also are available. The Marketing Department of Bun-and-Run Inc. reports that the distribution of daily sales for their restaurants follows the normal distribution and that the population standard deviation is $3,000. A sample of 40 franchises showed the mean daily sales to be $20,000. a) What is the population mean of daily sales for Bun-and-Run franchises? b) What is the best estimate of the population mean? What is this value called? c) Develop a 95% confidence interval for the population mean of daily sales. d) Interpret the confidence interval.