Problem

Improperly filled orders are a costly problem for mail-order houses. To estimate the mea...

Improperly filled orders are a costly problem for mail-order houses. To estimate the mean loss per incorrectly filled order, a large firm plans to sample n incorrectly filled orders and to determine the added cost associated with each one. The firm estimates that the added cost is between $40 and $400. How many incorrectly filled orders must be sampled to estimate the mean additional cost using a 95% confidence interval of width $20?

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