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A previous study that investigated the cost of renting automobiles in the United States found a...

  1. A previous study that investigated the cost of renting automobiles in the United States found a mean cost of approximately $55 per day for renting a midsize automobile with a standard deviation of $9.65.

Suppose the project director wants an estimate of the population mean daily rental cost such that there is a .99 probability that the sampling error is $2 or less.

How large a sample size is needed to meet the required precision?

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Answer #1

sampling error zxo - am ең г. 2 at 99% confidence Int. z 2.58 oz $ 9.65 sampling error = $2 or less. : 9 = 2.58 X 9.65 In 2.

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