Suppose we want a 90% confidence interval for the average amount spent on books by freshmen in their first year at a major university. The interval is to have a margin of error of \(2. Based on last year’s book sales, we estimate that the standard deviation of the amount spent will be close to \)30. The number of observations required is closest to

(a) 25. (b) 30. (c) 608. (d) 609. (e) 865.

Short Answer

Expert verified

The number of observations required is the closest to609.

Step by step solution

01

introduction

We know, confidence level = 90%

Interval is to have a margin of error E=2

The standard deviation of the amount spent will be P =30

02

explanation

Calculating the sample size S=Z2×P×QE2

Z=1.645at confidence level =90%

=1.645×3022=609

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Most popular questions from this chapter

Scientists collect data on the blood cholesterol levels (milligrams per deciliter of blood) of a random sample of 24laboratory rats. A 95%confidence interval for the mean blood cholesterol level μis 80.2to 89.8. Which of the following would cause the most worry about the validity of this interval?

a. There is a clear outlier in the data.

b. A stem plot of the data shows a mild right skew.

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d. The population distribution is not exactly Normal.

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