Wednesday, May 28, 2008

I Don't Understand

A pizza shop owner wishes to find the 95% confidence interval of the true mean cost of a large plain pizza. How large should the sample be if she wishes to be accurate to within $0.15? A previous study showed that the standard deviation of the price was $0.26.

BUT WHY???

WHY would a pizza shop owner wish to find "THE 95% CONFIDENCE INTERVAL OF THE TRUE MEAN..."

Other than a retired Statistician who chose to open a pizza shop, would a pizza shop owner even know what a "95% confidence interval" mean???

I DOUBT IT!!!

SO WHY!

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