Question

In: Statistics and Probability

Suppose your company wanted to determine the amount of sales of a new SUV model, called...

Suppose your company wanted to determine the amount of sales of a new SUV model, called Lightning. The sales estimate would be based on the overall demand of various SUV model types. Overall demand is assumed to be normally distributed with a mean of 3 million units and standard deviation of 500,000 units. The share of demand that Lightning will take is assumed to be 4%. After running 1,000 simulated scenarios, a 95% confidence interval was constructed for the expected sales of Lightning units sold with limits of 93,048 and 146,964.

1. If a mean of 6 million units was used in the simulation, how would the confidence interval change? Explain.

2. How would the confidence interval change if a standard deviation of 250,000 was used? Explain.

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orchestra answered 1 year ago
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