A for each dentist determine the 95 confidence

This preview shows page 5 - 6 out of 6 pages.

cavities he or she anticipates treating with Caridex during an average week. a)For each dentist determine the 95% confidence interval estimate of the average number of cavities to be treated weekly by Caridex. Historical Information determined that sigma for cavities is 1.75. b)Now, let’s estimate the annual number of cavities to be treated by Caridex by completing the table below using your answer in part a. Assuming 52 weeks in a year and that 4% of the 280,000 US dentists would use Caridex, this means approximately 11,200 dentists would use the product. Fill in the following information. Number of Cavities per Dentist Number of Cavities per Year
OPIM 550 EP: MANAGERIAL STATISTICS, FALL 2017 MCDONOUGH SCHOOL OF BUSINESS, GEORGETOWN UNIVERSITY
c)Now, let’s estimate the annual revenue
d)Taking into account the variable cost of $0.50 per cavity and the fixed cost of $4 million. Do we have evidence to suggest using the data and our analysis that NPD will make a profit for Caridex in its first year? Please explain your answer briefly and concisely. Use appropriate calculations to support your answer.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture