Population Variance and Estimators

By Customwritings-us on June 27, 2016

Population Variance and Estimators

Suppose you are a consultant to Starbucks Corporation. Starbucks is interested in measuring the population variance in the number of customers it has on a daily basis in all its stores in the U.S. However, it is limited in its ability to track this number across all stores and has to select a sample. Think critically about the following questions:

There are two estimators for the population variance with different levels of bias and variance. Explain how you would go about choosing between these two estimators.
You are interested in coming up with a 95% confidence interval for the population variance. How would you go about deciding the number of outlets to sample?

Note: One of the sources must be the textbook: Doane, D.P. & Seward, L.E. (2013). Applied Statistics in Business and Economics, 4^th Edition. McGraw-Hill.

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