Premium Essay

Bob Candies

Submitted By johnnyblaze
Words 380
Pages 2
Bob’s Candies

Bob loves making candy, especially varieties of caramel, including plain, chocolate dipped caramels and chocolate dipped caramels with pecans. Bob has received lots of compliments from his friends and neighbors, and several have encouraged him to start his own candy making business.

After several days of research, Bob finds that the national average amount of money spent annually per person on this type of specialty candy is \$75. Bob believes that the citizens in his area spend more than that per year. Knowing whether or not this is true could help Bob make a wise decision regarding his future business plans.

Bob wants to use statistics to support his claim, and to help him obtain a small business loan. Bob also wants to find an estimate of the true amount of money local citizens do spend on this type of specialty candy.

Bob randomly selects several people from his local phone book and asks the person that answers how much money they typically spend per year on candy like he will make. He obtains the following results (in dollars): 75, 74, 80, 68, 79, 85, 77, 82, 79, 67, 90, 72, 76, 75, 69, 85, 78, 79, 82, 66, 75, 85, 90, 76, 85, 67, 89, 82, 69, 79, 82, 80, 84, 79, 78, 81, 77, 84, 80, 76.

Based upon these results, Bob is hoping his area has a good customer base for his new business. Bob also hopes the bank is impressed with his use of statistics and will grant him the loan he needs to start it!

Questions:
1. What is an appropriate set of hypothesis for Bob to test?
2. Is a z- or t-value test appropriate for this situation? Why?
3. Perform an appropriate hypothesis test, showing all critical steps.
4. Do you support Bob’s claim that citizens in his area spend more than \$75 per year? Explain why or why not.
5. Find a 95% confidence interval for the true mean amount that citizens spend per year.
6. What do you think the...

Similar Documents

Premium Essay

Bob's Candies

...Bob’s Candies Bob loves making candy, especially varieties of caramel, including plain, chocolate dipped caramels and chocolate dipped caramels with pecans. Bob has received lots of compliments from his friends and neighbors, and several have encouraged him to start his own candy making business. After several days of research, Bob finds that the national average amount of money spent annually per person on this type of specialty candy is \$75. Bob believes that the citizens in his area spend more than that per year. Knowing whether or not this is true could help Bob make a wise decision regarding his future business plans. Bob wants to use statistics to support his claim, and to help him obtain a small business loan. Bob also wants to find an estimate of the true amount of money local citizens do spend on this type of specialty candy. Bob randomly selects several people from his local phone book and asks the person that answers how much money they typically spend per year on candy like he will make. He obtains the following results (in dollars): 75, 74, 80, 68, 79, 85, 77, 82, 79, 67, 90, 72, 76, 75, 69, 85, 78, 79, 82, 66, 75, 85, 90, 76, 85, 67, 89, 82, 69, 79, 82, 80, 84, 79, 78, 81, 77, 84, 80, 76. Based upon these results, Bob is hoping his area has a good customer base for his new business. Bob also hopes the bank is impressed with his use of statistics and will grant him the loan he needs to start it! Questions: 1. What is an appropriate......

Words: 382 - Pages: 2

Free Essay

Sweet Ladies

...ladies” is a British short story adapted from the original story written by Rachel Cusk and published in 2003. Sweet Ladies is about a woman named Sylvia Furnish who owns a candy store. One day a small group of women come into her store with all of their children and she catches one of the children stealing candy. Sylvia confronts the mother, and the son, named Troy, starts defending his mother, but ends up apologizing and returns the candy bar. The story stretches over a day, and it is written from Sylvia’s point of view. The story takes place in Doniford, which is a city in the southern part of England and it is described as a cold and windy city because it is near the sea. Mostly the characters in the story are in the candy store, which is a two story building where Sylvia lives on the upper floor. The store is not described as good as I could be, but when you read the story you assume that it is a small dark store because she describes the smell as a “chalky smell of sweets” (page 1line 33) and there is a bell over the door that chimes every time someone walks in. In the store Sylvia sells candy, tobacco and some stationary (page 1line 31). Sylvia Furnish is a very strong minded and bitter woman, but deep down she turns out to be kind and loving (page 4 lines 132-133) because she decides to give Troy a candy bar, the next time he comes to the store, even though he just tried to steal from her. The reason why she is so bitter could be because she lost contact with......

Words: 791 - Pages: 4

Free Essay

Kcpl

...the proposal of A-One Confectionaries Private Ltd (APL) about becoming its contract manufacturer. OPTIONS: KCPL has the following 3 options:     • Option 1: Accept APL’s offer     • Option 2: Become an independent contract manufacturer.     • Option 3: Rebuild the “MKG” brand. DECISION: KCPL should work on reviving its brand. ACTION PLAN: KCPL has to work on technology upgradation, increasing capacity utilization and managing a efficient workforce. It also has to improve its brand image and target new profitable markets. CONTINGENCY PLAN: As a contingency plan, KCPL can accept the offer of APL. 1. SITUATIONAL ANALYSIS       Mohan Kumar Gupta started Kanpur Confectioneries Private Limited (KCPL) in Jaipur in 1947 to sell sugar candy under the brand name of “MKG”. He later set up a production unit in Kanpur (UP) because of intense competition in Jaipur. He ventured into the biscuit industry with the “MKG” brand. Its turnover increased during the early 80’s. But with the stiff competition from the firms in the organized and unorganized sector its sales have declined and   by mid 80’s it has started making losses (Exhibit 1). It became a contract manufacturer for Pearson Health Drinks Limited (Pearson) in 1985. But Pearson faced stiff competition from A-One Confectioneries Private Limited (APL).  Now in September 1987, KCPL has the proposal of becoming a contract manufacturer for APL. If KCPL accepts the proposal,.....

Words: 277 - Pages: 2

Premium Essay

How to Run an Domestic to International Business

...Market entry strategy and target countries       Section III: Financials ·         Projected Income statement for 3 years ·         Cash flow statement for one year.   Section IV: An Implementation Schedule * Periodic operational/management review * Contingency planning and exit strategy   Addenda: Background Data on Target Countries and Market ·         Basic market statistics: historical and projected ·         Background facts ·         Competitive environment Bibliography * Resources used to create this Import/Export Business plan. Executive Summary Jenny’s Global Confections serves unique candies, chocolates and elaborate sweet dishes from around the world. Our employees are multinational and bring their unique styles and flavors from their countries to our confections. Our products range from multi-flavored hard candies to delicately made multi-leveled chocolates (white, milk and dark) confections that are delectable and memorable. We also have elaborate sweet dishes that will tickle your taste buds and have you coming back for more. Jenny’s Global Confections is a company that caters to Baltimore City businesses that entertain international clients....

Words: 2419 - Pages: 10

Premium Essay

Blueribbon Chocolates

...hoCase study Bleu riBBon CHoColates: How Can small Businesses aDaPt to a CHanGinG environment? Dawn r. Deeter-schmelz, rosemary P. ramsey, and Jule B. Gassenheimer Bleu Ribbon Chocolates is a small regional manufacturer of high-quality chocolate that sells its products via trade accounts, corporate-owned stores, and online/mail. Historically, the company has not engaged in strategic planning, as demand was greater than manufacturing capabilities. The trend toward healthier foods and the poor economy, however, has hurt sales. The owners must determine their new strategic direction. Should they change the product line, in-source manufacturing, reduce the number of companyowned stores, increase sales to retail outlets, lay off workers, or hope the health craze ends soon and the economy turns around? Bleu Ribbon Chocolates, a small manufacturer well-known in the Midwest for producing and retailing high-quality chocolates, was at a crossroads. Historically, Bleu Ribbon Chocolates has not engaged in strategic planning. Management saw no need; everything had been going fine. In the past, demand always had been greater than what the company could produce, and geographic expansion was not a goal. Unfortunately, by 2010, the external environment had changed significantly, and the current owners of Bleu Ribbon Chocolates found they needed to determine a new strategic direction. Today, more consumers prefer healthy food products. In fact, organic products comprise 8 percent of the......

Words: 3825 - Pages: 16

Premium Essay

Porter's Analysis of Confectionery Industry in India

...with an appropriate conclusion. Confectionery Industry Confectionery Industry CONFECTIONARY INDUSTRY INDUSTRY OVERVIEW The confectionary industry can be broadly divided into 6 sectors 1) Chocolates 2) Hard Boiled Candies 3) Éclairs and Toffees 4) Chewing and Bubble Gum 5) Mints and Lozenges 6) Lollipops MAJOR PLAYERS * Cadbury ( Dairy Milk, Perks, Gems, 5-Star celebrations, Bytes,  Dairy Milk Éclairs, Éclairs Crunch, Halls, Bubbaloo Bubble gum) * Nestle(Kit Kat, Kit Kat Chunky, Munch, Munch Pop Choc and Milkybar Crispy Wafer) * Parle (Simply Imlee) * HUL (ChocoMax and Max Magic candy) * Perfetti ( Centre Shock, Happydent White, Alpenliebe, Big Babool, Chloromint and Cofitos) * Candico (Mint-O and Loco Poco). Industry Trends and Size In 2005, the market size of the confectionary business was very small and approximately valued at \$427 million. For population 3 times US population it was 20 times smaller than the US market. In 2012, it had grown to thrice its size in 2012 at \$1.1billion dollar. The organized sector was valued at around \$350 million dollar and \$750 million in unorganized sector. It has grown at a CAGR of 15% from 2008-2012. And expected CAGR from 2013-2018 is 23% The size of the candy market in terms of value as of 2012 is \$664 million of which 70% is sugar confectionary and remaining 30% is chocolate confectionary. In terms of volume is over 4 million tonnes. Production and Consumption...

Words: 1238 - Pages: 5

Premium Essay

Business Law

...following case, Express versus Implied Contracts. Suppose that a local businessperson, McDougal, is a good friend of Krunch, the owner of a local candy store. Every day on his lunch hour McDougal goes into Krunch’s candy store and spends about five minutes looking at the candy. After examining Krunch’s candy and talking with Krunch, McDougal usually buys one or two candy bars. One afternoon, McDougal goes into Krunch’s candy shop, looks at the candy, and picks up a \$1 candy bar. Seeing that Krunch is very busy, he catches Krunch’s eye, waves the candy bar at Krunch without saying a word, and walks out. An express contract is where the terms of the agreement are fully and explicitly stated in words, oral or written. An implied contract is where the plaintiff furnishes a service or property, the plaintiff expected to be paid for the service or property, and the defendant knew that payment was expected, or the defendant had a chance to reject the services or property and did not (Miller and Jentz, 2008). This would be considered an implied contract. Based on the history that McDougal goes into the candy store every day, spends time looking at the candy, and almost every time buys a candy bar. The time that Kruch the store owner was busy, McDougal picked up a candy bar and waves it to Krunch and walks out. McDougal would have paid for the candy bar at a later time, and would be implied based on his actions. The fact that the store owner did not say anything and remained......

Words: 339 - Pages: 2

Free Essay

Candy Crush Soda Saga Level 212

...Candy Crush Soda Saga Level 212 find 2 Bears in 40 moves Do not focus only on the bears in order to complete Candy Crush Soda Saga Level 212 and also try and find the pink fishes. Finding the pink fishes in Candy Crush Soda Saga Level 212 will be very helpful especially if you manage to find the large pink fish in the middle of the playing area. However, try to clear whatever frozen tile you can in Candy Crush Soda Saga Level 212. Finding the pink fish will help you to clear frozen tiles that you were not able to in the first place. This will be due to the fact you have forced the jelly fishes that are released from the pink fish. These jelly fishes are the ones that are used to clear these frozen tiles. Candy Crush Soda Saga Level 212 requires you to try and match candies as low and often as you can on the playing area because candies in the playing area move from the top to the bottom. Large amount of candies will be shifted in Candy Crush Soda Saga Level 212 creating opportunities to come up with special candies and hopefully matching some automatically. This will help you to clear Candy Crush Soda Saga Level 212 in the least moves possible. Do not forget about the rest of the playing area in Candy Crush Soda Saga Level 212 as you concentrate on the bottom part of the playing area. It is very easy to forget to create special candies in the top part of the playing area. Glance at the rest of the playing area after every move that you make as you play Candy Crush...

Words: 318 - Pages: 2

Premium Essay

Wac1

...Subject: Recommendation to Kanpur Confectionaries Private Ltd. Dear Mr. Gupta, On behalf of the Consulting and Analyzing Team (CAT), I present to you the report containing recommendations and the action plan for the benefit of the Kanpur Confectionaries Private Ltd. Outline of the Report Kanpur Confectionaries Private Limited (KCPL) is a family business that is into glucose biscuit production. It was setup by Mohan Kumar Gupta as a sugar candy business. But he soon diversified it into biscuit production unit because of market related issues and low technological requirement. Mr. Gupta had always aspired to make ‘MKG’ a leading brand. He put in a lot of efforts and that showed off. The company performed well in the earlier stages gaining a good amount of market share and profit (and hence revenues too). But due to ever increasing competition in the market, the performance of KCPL gradually started to deteriorate. Eventually, a company that gained 20 lakhs a year started losing more than 15 lakhs a year. Also, they shut off the sugar candy business. Seeing this, two companies proposed offers to KCPL. Problem Statement: What shall KCPL do in order to regain the brand (MKG) popularity and profitability in the biscuits market and fully utilize its production capacity keeping its integrity intact? The options include the following: 1) Accept A-One Private Limited’s (APL) proposal in addition to continuing its own production of 120 tons and stop manufacturing for......

Words: 1616 - Pages: 7

Premium Essay

Jorg Spenkuch Black Licorice

...Candy and chocolate are treats enjoyed by many. They come in a variety, ranging from Snickers and Hershey's to Starbursts and Skittles. When choosing these treats we usually pick the ones we like and exclude the distasteful ones on the basis of flavor or packaging. A candy that is normally "excluded" from the group is black licorice. To be frank, I think black licorice is a candy with a horrid taste; however I tend to "sympathize" with it. Now, I'm not saying that I can relate to black licorice because I'm dark skinned. I am saying it because there were times in my life where I felt excluded from things much as I am inclined to exclude licorice. As a child who has lived in three countries, adjusting can be tough. I remember living in Antigua for a huge chunk...

Words: 1430 - Pages: 6

Premium Essay

Flowers For Algernon Analysis

...William Rumelhart Mrs. Veitch Period:2 Date:2/15/18 The Flower Wilted, but Left Behind its Seeds Imagine a bowl of candy for a hungry stomach, with the sweet juices of the candy oozing in every bite. Charlie Gordon’s surgery is like a dive into a bowl of candy, where every sweet pop is a new friend, another reassurance of “fitting in.”The science fiction short story “Flowers for Algernon,” written by Daniel Keyes, follows the life of a developmentally disabled adult, Charlie Gordon and his experience after receiving an experimental, intelligence enhancing surgery. Unfortunately, Charlie’s intellect crashed as quickly as it rose; in a couple months. Many might...

Words: 809 - Pages: 4

Free Essay

Send a Sneakpeeq Invite to Your Friends

...Mars Inc. Unit 5 Individual Project Introduction The principles of marketing apply to every business and operation that produces and sells some type of commodity in exchange for profit. The marketing mix contains specific tools, which help companies and their marketing team to build and evaluate a product, structure the price based on the value, effectively promote the product, and place the product with best-suited channels of distributions. For a company that operates on a global scale, such as Mars incorporated, these tools are even more important to assess. Describe Main Line of Business of the Company Mars Inc. is one of the largest privately owned companies in the U.S.A alone (FAQs, 2012). Best known for their chocolates and candies; the company offers a diversity of other products from segmented areas within their company concerning pet care products, symbioscience, drinks, gum, and foods (Market Summaries, 2012). The company has approximately over 70,000 associates working nationwide at one of their facilities, which are located globally in over 73 different countries (Where we Operate, 2012). Name Four Countries in which the Company Operates The Mars Company caters to all kinds of people all around the world. Their operations reach far across seas and dwell in...

Words: 1846 - Pages: 8

Free Essay

Bonbon Mania

... Executive Summary The following consultancy report aims to provide an in-depth analysis of Bonbon Mania’s current situation and as a result a thorough recommendation to set Bonbon Mania on the path to augment brand identity and increase brand awareness. Given our strategic direction Bonbon Mania will be positioned as the leading provider of premium confectionaries for businesses and special event sectors. Product & Service Bonbon Mania offers a wide range of sweets and chocolates for businesses and individuals who wish to emphasize how special an occasion or event is. They offer unique gift packages that bring a touch of whimsy to any type of event. Additionally, they offer a personalized service consisting of presentation of candies that are displayed at events. Target Market & Need Assessment Bonbon Mania’s current target market is split in five segments; the general public, corporations, organizations, grocery stores and retailers. Based on our analysis and decision criteria, we have identified the target markets to be organizations and associations sorely. Being an organization or corporation the need arises to recognize employees or to simply launch...

Words: 6115 - Pages: 25

Premium Essay

Incentive Plans

...Incentive Plans MGT/431 February 21, 2012 Incentive Plans Organizations provide incentive plans to employees as motivation to reach the objectives and goals of the company. Incentives are given to personnel to encourage them to do his or her best. Incentive plans in any business might include bonuses or raises, stock option plans, or other forms of incentives. This is in exchange for the employees who work harder, better, or faster in accordance with the organizations goals and objectives (Businesstown.com, 2001). The majority of incentives are performance-based policies in which workers receive additional cash or benefits centered on a worker’s performance. Raises and Bonuses Most companies will award a base salary increase that is dependent on several factors, including job classification, your individual performance, your company's overall financial performance, and your company's salary structure (Salary.com, 2012). Bonuses and annual incentive payouts depend primarily on two variables: your job performance and your company's overall financial performance. Depending on your job, these programs can vary in complexity and payout (Salary.com, 2012). Each year employee’s at Aetna are given bonuses and raises based on how well the company does. If an employee receives a three or higher on his or her year-end scorecard they are eligible for the bonus and raise. During the month of February employees are contacted by their manager who advises them what his or her......

Words: 939 - Pages: 4

Premium Essay

Jgfghghg Hhhj

...targeting candy bars to adults rather than to children? The advantages of targeting candy bars to adults may be one that many people don’t understand but, there are some very important reasons on why some candy manufacturers do so. First off mothers determine children’s early taste in candy. Therefore, if a company like Hershey can target mothers to buy Hershey candy than their children are more likely to buy Hershey candy.   In addition to targeting mothers as adults, research shows that adults eat more than 55 percent of all candy sold. This is the main reason why candy manufacturers target candy bars to adults rather than children.   2. Does targeting to adults require a change in image for candy products? Now that we understand why candy manufacturers target adults, next we have to understand the process of targeting this candy to adults. The most important aspect of this process is the image. Bite-size products are especially popular with adult consumers. When wrapped in seasonal colors, these products have tremendous appeal for adults during Christmas and Easter season. In December 1998, Hershey targeted the ever-growing snacking segment of the confectionery industry by transforming some of its most popular bars into “Hershey Bites.” Included in this range of products were Hershey’s Milk Chocolate with Almonds, Cookies ‘n’ Creme, Almond Joy, and Reese’s Peanut Butter Cups. Unwrapped, bite-size chocolate candy now represents about one-fourth of the packaged chocolate......

Words: 284 - Pages: 2