Practical Application Scenario

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Practical Application Scenario 1 To complete this scenario, use SAS Enterprise Guide or the Confidence Interval Calculator and the Area Gas Prices document, provided in Updates and Handouts. The Star Tribune newspaper has decided toWrite an article about gasoline prices in the Twin Cities area (Minneapolis and St. Paul, Minnesota). The newspaper has designed a survey and taken a simple random sample of regular unleaded gas prices at 70 area stations. The results are in the Area Gas Prices file. The newspaper’s policy is that no data will be reported unless they are 95 percent confident that the numbers are correct. As the new manager of the data verification unit at the Star Tribune, you need to develop a 95 percent confidence interval for the average price of regular unleaded gasoline in the Twin Cities area.You already know how to compute sample parameters, like the sample mean and sample standard deviation; this scenario simply asks you to complete a confidence interval for the data provided and communicate the results to the Star Tribune’s business manager.

Practical Application Scenario 2

To complete this scenario, use the Sample Size Estimator file provided in Resources.The third shift at the Microsoft’s Windows security unit in Redmond, Washington is considering replacing its coffee brewing units with new German-made brewers. As the newest member of this elite Microsoft team, you have been assigned to investigate this proposal. Develop a 99 percent confidence interval for the average yield (cups per pound) for the new German coffee brewer. The margin of error should be no bigger than 0.3 (three tenths of a cup). Based on experience with the current coffee makers, your best guess for the population standard deviation, sigma, is 1.2 cups. How big of a sample do you need? Calculate the estimated sample size needed for the above scenario and communicate your findings to the business manager.

Assignment Submission

Compile the two practical application scenario answers into one Word file (submitted as a .docx file) and copy the Excel or SAS output into that document. Highlight your numerical answers for both practical applications scenarios in yellow, and then right after that numerical solution, be sure to summarize your findings in a three- to five-sentence paragraph to the scenario manager.

Submit your report to the assignments area for grading. Please note that assignments must be submitted to the assignments area for grading. Work e-mailed or otherwise presented can not be graded in accordance with Capella Grading Standards. Because of the nature of statistics-based assignments, your instructor cannot give feedback on drafts of your work. Instead, if you have questions as you complete assignments, you are encouraged to attend the weekly supplementary instruction sessions or to consult the archived sessions for suggestions. Refer to the scoring guide prior to submission to ensure you meet all evaluation criteria.

Assignment Solutions

Each week, after your unit assignments are graded, solution sets will be posted in the Updates and Handouts section for your review. Be sure to compare your work to the posted solutions, as the review is an important part of the learning process.

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