Question

Select one (1) project from your working or educational environment in which you would use the confidence interval technique for the process. Next, speculate on one to two (1-2) challenges of utilizing such a technique in the process and suggest your strategy to mitigate the challenges in question.

Answer 1

ANSWER:

Given that,

Market Research:

One effect of confidence intervals in businesses is in determining the reliability of market research. Marketing is an important function for most firms, particularly when estimating their level of future sales.

A company will want to have an idea of how many products it will sell in a given financial period, but cannot know the true number with certainty until after the end of the period.

Challenges:

1)

Lack of quality data : Absence of true representation of population data, sample data is not representative of population.

2)

Absence of adequate past data to predict future

Mitigation:

By collecting data from customers, past sales numbers and other sources, a company can statistically estimate the value of future sales. By using a confidence interval, the company can determine the range its sales are likely to fall.

mitigation includes:

1)

Collecting more data. The richer by data is the more accurate my representation will be. Rich in terms of variable captured on the population. Also, more data increased the reliability of the market research.

2)

Collecting data which is a good representative of the population. This basically means the variance in all variables relating to population should be captured by the sample.