Buying a Corvette Research of selling prices for used two-year-old Corvettes rev

Question

Buying a Corvette Research of selling prices for used two-year-old Corvettes reveals mat they have a standard deviation of $2157 (based on data from Edmunds.com). How many selling prices must you obtain in order to estimate the mean selling price of these cars? Assume that you want 98% confidence that your sample mean is within $250 of the population mean. Is it likely that you will find that many two-year-old used Corvettes in your region? Please explain how you obtain the 98% conf. level from the Z-scores table

Explanation / Answer

for 98% CI, we need to look up value of z at 99th percentile which is 2.326 (from table at0.9901 value you can see 2.3 on left column and 0.03 on top row ; if you will take average with linear interpolation

z=2.326

margin of error E=250

hence sample size n=(z*std deviation/E)2 =~403

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