A national chain of home improvement centers tracks weekly sales at its locations. Typically, sales average $500,000 per week at each store, with the standard deviation among stores at $75,000. a....

A national chain of home improvement centers tracks weekly sales at its locations. Typically, sales average $500,000 per week at each store, with the standard deviation among stores at $75,000.

a. Assuming a normal model is appropriate for the sampling distribution, which model describes the sampling distribution of the average of weekly sales at a sample of 25 stores?⁹

b. Should management interpret average sales of $425,000 in a sample of 25 stores as a large deviation from the baseline of $500,000?
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c. A new manager overreacted to a weekly sales report and ordered a new advertising program, even though nothing really changed. What sort of error (Type I or Type II) has this manager committed?
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