In: Statistics and Probability
You want to obtain a sample to estimate how much parents spend on their kids birthday parties. Based on previous study, you believe the population standard deviation is approximately σ=21.9σ=21.9 dollars. You would like to be 95% confident that your estimate is within 3 dollar(s) of average spending on the birthday parties. How many moms do you have to sample
Solution :
Given ,
= 21.9 ..Population SD
E = 3 Margin of error
c = 95% = 0.95 ...confidence level
Find sample size required.
c = 0.95
= 1- c = 1- 0.95 = 0.05
/2 = 0.025
Using Z table ,
= 1.96
Now, sample size (n) is given by,
= {(1.96* 21.9 )/ 3 }2
= 204.718864
= 205 ..(round to the next whole number)
Answer : Required Sample size is n = 205