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Mathematics, 23.10.2019 21:00 kbruner20
You work in the corporate office for a nationwide convenience store franchise that operates nearly 10,000 stores. the per-store daily customer count has been steady, at 900, for some time (i. e., the mean number of customers in a store in one day is 900). to increase the customer count, the franchise is considering cutting coffee prices. the 12-ounce size will now be $0.59 instead of $0.99, and the 16-ounce size will be $0.69 instead of $1.19. even with this reduction in price, the franchise will have a 40% gross margin pn coffee. to test the new initiative, the franchise has reduced coffee prices in a sample of 34 stores, where customer counts have been running almost exactly at the national average of 900. after four weeks, the sample stores stabilize at a mean customer count of 974 and a standard deviation of 96. this increase seems like a substantial amount to you, but it also seems like a pretty small sample. is there some way to get a feel for what the mean per-store count in all the stores will be if you cut the coffee prices nationwide? do you think reducing coffee prices is a good strategy for increasing the mean customer count?
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