Kolbe, product manager for a line of shoes, is wondering whetherto introduce his product line into a new market area. A recentsurvey of a random sample of 500 households in that market showed amean household income of $34,000 with a standard deviation of$2,000. On the basis of past experience and of comprehensivestudies in current market areas, Kolbe believes the product linewill be profitable only in markets where the mean household income(across all households) is greater than $30,000. Should Kolbeintroduce the product line into the new market?
