Foot Locker uses sales per square foot as a measure of store

Foot Locker uses sales per square foot as a measure of store productivity. Sales are currently running at an annual rate of $406 per square foot. You have been asked by management to conduct a study of a sample of 64 Foot Locker stores. Assume the standard deviation in annual sales per square foot for the population of all 3400 Foot Locker stores is $80.

a) What is the standard deviation of the sampling distribution?

b) What is the probability that the sample mean will be within $15 of the population mean?

Solution

SD = 80 / srqt (64)

SD = 10

b9)

P( x > 421

P( z > 421 - 406 / 10 )

P( z >1.5) = 0.0568