Why store executives are considering a promotion


To compute location measures and confidence interval for the given data.

The Stop N Go convenience chain recently selected a random sample of 10 customers. 

The store monitored the number of times each customer made a buy at the store over a two-month period.  The following data were collected:

10 19 17 19 12 20 20 15 16 13

Store executives are considering a promotion in which they reward frequent purchasers with a small gift.  They have decided that they will only give gifts to those shoppers whose number of visits in the past two-month period is above the mean plus 1 standard deviation.  Find out the minimum number of visits required to receive a gift.

MEAN = 161/10 = 16.1

576_location measures and confidence interval.jpg

The minimum number of visits necessary to receive a gift is 19.6 rounded up = 20.

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Basic Statistics: Why store executives are considering a promotion
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