Data Science Classroom Series – 13/Nov/2021

Confidence of Two Independent Samples, Where Population Variance is unknown but assumed to be different

  • CI Formula in this Situation: Preview
  • Degrees of freedom: Preview

Practical Example

  • This sample is about a Shoe Company Albundy’s.
  • The Problem this organization is facing is with left stock in the inventory. So organization has to sell it for losses.
  • The data of the sales 3 years is given to us and this company has been selling shoes for 30 years
  • Refer Here for the dataset
  • Exercise: Find 95% confidence interval using historical data so that Albundy can produce the shoes as per demand
    • Last 12 months of sales
    • Only for mens shoes
    • Only for the USA
  • Solution: You need to find out the CI for each shoe size (17 sizes) with 95% confidence Preview
  • OutCome Albundy should focus on Supplying following number of shoes to have less losses due to over stock in inventory Preview
  • Exercise: In This exercise Try to find by how much is one shop outperforms other shop in terms of sales
    • Consider them as independent As our assumption is same people dont but shoes from differnt outlets in same year
    • We have two samples whose population variance is unknown but we can assume it to be equal.
    • Try to find by how much is one shop outperforms other shop in terms of sales with 95% confidence Preview
    • Since all the CI values are starting from negatvie to positive , these two shops are so balanced in terms of sales, they may be bundled together. On Averge they will move together & are predicated to remain identical

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