In: Statistics and Probability
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
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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