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In: Statistics and Probability

The water works commission needs to know the mean household usage of water by the residents...

The water works commission needs to know the mean household usage of water by the residents of a small town in gallons per day. They would like the estimate to have a maximum error of 0.15 0.15 gallons. A previous study found that for an average family the variance is 3.61 3.61 gallons and the mean is 17.3 17.3 gallons per day. If they are using a 90% 90% level of confidence, how large of a sample is required to estimate the mean usage of water? Round your answer up to the next integer

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ANSWER:

Given data,

The water works commission needs to know the mean household usage of water by the residents of a small town in gallons per day. They would like the estimate to have a maximum error of 0.15 gallons. A previous study found that for an average family the variance is 3.61 gallons and the mean is 17.3 gallons per day. If they are using a 90% level of confidence, how large of a sample is required to estimate the mean usage of water? Round your answer up to the next integer

The maximum error =E = 0.15 gallons

The variance = ^2 = 3.61 gallons

The mean 17.3 gallons

level of confidence = c = 90% = 90/100 = 0.90

= 1-c = 1-0.90 = 0.1

/2 = 0.1/2 = 0.05

Critical value

Z/2 = Z0.05 = 1.64

Formula for Sample size is

Sample size = n = ((Z/2)^2 * (^2)) / (E^2)

Sample size = n = ((1.64)^2 * (3.61)) / (0.15^2)

Sample size = n = 431.5

Sample size = n = 432 (Rounded to next integer)

Therefore 432 sample is required to estimate the mean usage of water.

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