The Retail Advertising and Marketing Association would like to estimate the average amount of money that a person spends for Mother's Day with a 99% confidence interval and a margin of error within plus or minus $6. Assuming the standard deviation for spending on Mother's Day is $36, the required sample size is ________.
A) 313 B) 284 C) 210 D) 239

Respuesta :

Answer:

D) 239

Step-by-step explanation:

We have that to find our [tex]\alpha[/tex] level, that is the subtraction of 1 by the confidence interval divided by 2. So:

[tex]\alpha = \frac{1-0.99}{2} = 0.005[/tex]

Now, we have to find z in the Ztable as such z has a pvalue of [tex]1-\alpha[/tex].

So it is z with a pvalue of [tex]1-0.005 = 0.995[/tex], so [tex]z = 2.575[/tex]

Now, find the margin of error M as such

[tex]M = z*\frac{\sigma}{\sqrt{n}}[/tex]

In which [tex]\sigma[/tex] is the standard deviation of the population and n is the size of the sample.

Required sample size:

Is n

n is found when [tex]M = 6[/tex]

We have that [tex]\sigma = 36[/tex]

So

[tex]M = z*\frac{\sigma}{\sqrt{n}}[/tex]

[tex]6 = 2.575*\frac{36}{\sqrt{n}}[/tex]

[tex]6\sqrt{n} = 36*2.575[/tex]

Simplifying by 6

[tex]\sqrt{n} = 6*2.575[/tex]

[tex](\sqrt{n})^{2} = (6*2.575)^{2}[/tex]

[tex]n = 238.7[/tex]

We round up, and the answer is 239.