Ralph’s Market is in the process of reviewing revenues at selected stores in southern California. Ralphs expects each store to produce a minimum $25,000 per day to remain profitable in the location each is in. Each store has been selected and data collected from comparable socio-economic areas.
You have been hired to conduct a data analysis of three stores selected at random to determine the viability of the store’s profitability. Therefore, each team should analyze the data on the attached spreadsheet and determine the following:
1. Why was it important in the analysis that all three stores were selected from similar locations? What bearing does that fact have on the team’s recommendation.
2. Assuming That based on the. Teams recommendation, Ralphs wants to expand its analysis to 300 stores across California. What would be an effective sample size of stores to conduct a valid analysis using the same $25,000 revenue target?