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Question

The manager of a newly opened Target store wants to estimate the average expenditure of his customers. From a preselected sample, the standard deviation was determined to be $18\$ 18. The manager would like to construct the 95%95 \% confidence interval for the mean customer expenditure.

a. Find the appropriate sample size necessary to achieve a margin of error of $5\$ 5.

b. Find the appropriate sample size necessary to achieve a margin of error of $3\$ 3.

Solution

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Answered 1 year ago
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If we look at the data given in a given exercise, we have the following:

  • standard deviation for population is σ=15\sigma=15
  • desired margin of error are E=5E=5 or E=3E=3
  • 95%95\% confidence level

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