1a. Describe a real world business situation for which cluster sampling would be useful in learning more about a certain population.
1b. Find business related article that uses clustering and describe its findings. Please cite your article appropriately.
As a manager of a company you are given 2 estimates for the annual firm’s profits:
1) Estimate A predicting that the mean profit would be between $1mil and $1.5 mil which is a 95% confidence interval;
2) Estimate B that the annual profits are between $1.2 mil and $1.4 mil, a 93% confidence interval.
Which of the two estimates is more accurate and why? Please discuss your findings
Give a real-world business example and explain the importance of using confidence intervals in business or other type of decisions.