Five months ago, Kim LePage was promoted to director of telemarketing operations at Consumer Convenience, Inc. (CCI), which is a retail catalog company that offers consumer products by mail-order and by telephone ordering. CCI's corporate target is to achieve $45,000 per day in sales revenues from telemarketing operations. Both Kim LePage and her manager have been concerned about the variability in the sales revenues from the telemarketing operations, and so Kim has decided to study the daily sales revenue data from the last five months of operations in order to get a better understanding of the sales revenues variability. Kim has obtained the daily sales revenue in a spreadsheet that is shown in Table 4.5. The daily cost of the telemarketing operations is $40,000 per day. A quick look at Table 4.5 indicates that there were at least a few days in which revenues were less than costs, which was not good.
Kim would like to report to her manager as much information regarding sales revenues as possible.
Assignment:
The spreadsheet contains the data. Using this spreadsheet, answer the following questions:
(a) What is the shape of the distribution daily sales revenue from telemarketing operations?
(b) What is an estimate of the expected daily sales revenue from telemarketing operations? How confident should Kim be about this estimate? Is there a need for more data?
(c) What is an estimate of the standard deviation of the daily sales revenue from telemarketing operations?
(d) On any given day, what is an estimate of the probability that daily sales revenue from telemarketing operations will be at least $45,000? How confident should Kim be about this estimate? Is there a need for more data?
(e) On any given day, what is an estimate of the probability that daily sales revenue from telemarketing operations will be less than $40,000? How confident should Kim be about this estimate? Is there a need for more data?
Attachment:- Data.xlsx