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If the manager of a paint supply store wants to estimate, with 90% confidence, the mean amount of paint in a 1-gallon can to within plus or minus ±0.005 gallons and also assumes that the standard deviation is 0.048 gallons, what sample size is needed?
Solution:
The sample size formula is given as below:
n = (Z*σ/E)^2
We are given
Confidence level = 90%
So, critical Z value = 1.6449
(by using z-table)
σ = 0.048
E = 0.005
n = (1.6449*0.048/0.005)^2
n = 249.3569
Required sample size = 250
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