Confidence level

Input variables:

 Mean = 100

Standard deviation of population = 15 and sample size = 50

Estimation standard error = 2.12

Probability for single tail for the confidence level = 0.05

Confidence interval; 96.51 lower limits, 103.5 upper limit

With 3.5 as the margin of error, there is 90 percent confidence level that the mean of the population is 96.5- 103.5

The confidence level means that the volume of the stock and its value will fall between 96.5- 103.5; it means that there is a higher likelihood that the parameter for measuring the volume of the stock will fall within the outline limits of the interval. Since the confidence level is high, it means that these parameters should be broader so that the confidence level is assured.  The decision makers would be interested in a confidence level of over 95 percent since it highlights the lowest and highest volume of stock that is currently available and in determining the movement of the stock in and out of the stock. It shows there are little chances of error for the level of stock in the store. It represents, to the decision, makers the level of certainty regarding the movement of stock.