An economist would like to estimate a 99% confidence interval for the average re

Question

An economist would like to estimate a 99% confidence interval for the average real estate taxes collected by a small town in California. In a prior analysis, the standard deviation of real estate taxes was reported as $1,260. Use Table 1.

What is the minimum sample size required by the economist if he wants to restrict the margin of error to $560? (Round intermediate calculations to 4 decimal places and "z-value" to 3 decimal places. Round up your answer to the nearest whole number.)

What is the minimum sample size required by the economist if he wants to restrict the margin of error to $560? (Round intermediate calculations to 4 decimal places and "z-value" to 3 decimal places. Round up your answer to the nearest whole number.)

Explanation / Answer

Margin of error = 560

SD = 1260

Z-crit = 2.5758

Thus,

M = z-crit * SD / sqrt(n)

Thus,

sqrt(n) = 2.5758 * 1260 / 560

= 5.7956

Thus, n = 33.589

Thus, 34 samples are required.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.