Confidence of Two Independent Samples, Where Population Variance is unknown but assumed to be different
- CI Formula in this Situation:
- Degrees of freedom:
- 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
- OutCome Albundy should focus on Supplying following number of shoes to have less losses due to over stock in inventory
- 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
- 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