SeaFair Fashions relies on its sales force of 220 to do initial screening of all new fashions. The company is presently bringing out new line of swimwear and has invited 40 salespeople to its Orlando home office. An issue of the constant concern to SeaFair sales office is the volume of orders generated by each and every salesperson. Last year the entire company average was $417,330 with standard deviation of $45,285.
a. What shape do you think distribution of all possible sample means of 40 will have? describe.
b. Find out the value of the standard deviation of the distribution of the sample mean of all possible samples of size 40.
c. Find out the probability that the sample of 40 will have a sales average less than $400,000.
d. How would the answer to part a, b, and c change if home office brought 60 salespeople to Orlando? Give the respective answers for this sample size.
e. Each and every year SeaFair invites sales personnel with sales above the 85th percentile to enjoy complimentary vacation in Hawaii. Find out the smallest sales level for the sales personnel who were awarded a trip to Hawaii last year. (Suppose the distribution of sales was basically distributed last year).