McDonald Corporation wishes to estimate the average annual sales at its various McDonald
Restaurants for the current year, �(y). It takes a random sample of n = 11 and obtains
the following data. Let x be the annual sale for the previous year, and y be the sale of
current year (obtained by doubling the sale of the �rst six months). Assume that N = 1000
and �(x) = 2:43 million dollars.
To estimate the average annual sales at various McDonald's restaurants for the current year, we need to use the given data. Let's break down the steps:
Step 1: Calculate the sample mean of the annual sales for the previous year (x).
- The sample mean, denoted as x-bar or �(x-bar), is calculated by summing up all the values of x and dividing it by the number of observations (n).
- In this case, the number of observations is 11, and the given �(x) = 2.43 million dollars.
Step 2: Calculate the sample mean of the sale for the current year (y).
- The sale for the current year is obtained by doubling the sale of the first six months.
- Since N = 1000, we can use the formula N = n * y-bar to estimate the population average (y-bar).
- Rearranging the formula, y-bar = N / n.
- Calculate y-bar by substituting N = 1000 and n = 11.
By following these steps, we can estimate the average annual sales at various McDonald's restaurants for the current year.