Question - Where do you buy? Consumers can purchase nonprescription medications at food stores, mass merchandise stores such as Kmart and Walmart, or pharmacies. About 45% of consumers make such purchases at pharmacies. What accounts for the popularity of pharmacies, which often charge higher prices?
A study examined consumers' perceptions of overall performance of the three types of store, using a long questionnaire that asked about such things as "neat and attractive store," "knowledgeable staff," and "assistance in choosing among various types of nonprescription medication." A performance score was based on 27 such questions. The subjects were 201 people chosen at random from the Indianapolis telephone directory. Here are the means and standard deviations of the performance scores for the sample:
|
Store type
|
x-
|
x
|
|
Food stores
|
18.67
|
24.95
|
|
Mass merchandisers
|
32.38
|
33.37
|
|
Pharmacies
|
48.60
|
35.62
|
(a) What population do you think the authors of the study want to draw conclusions about? What population are you certain they can draw conclusions about?
(b) Give a 95% confidence interval for the mean performance for each type of store.
(c) Based on these confidence intervals, are you convinced that consumers think that pharmacies offer higher performance than the other types of store? (In Chapter 12, we will study a statistical method for comparing the means of several groups.)