Discussion:
The standard deviation of the daily demand for a product is an important factor for inventory control for the product. Suppose that a pharmacy wants to estimate the standard deviation of the daily demand for a certain antibiotic. It is known that the daily demand for this antibiotic follows an approximately normal distribution. A random sample of days has a sample mean of orders for this antibiotic with a standard deviation of orders. Find a confidence interval for the population standard deviation of the daily demand for this antibiotic.
1. What is the lower limit of the 99% confidence interval?
2. What is the upper limit of the 99% confidence interval?