An economist wants to find a 90% confidence interval for the mean sale price of houses in a state. How large a sample should she select so that the estimate is within $3500 of the population mean?...

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An economist wants to find a 90% confidence interval for the mean sale price of houses in a state. How large a sample should she select so that the estimate is within $3500 of the population mean? Assume that the standard deviation for the sale prices of all houses in this state is $31,500.

Answered Same DayDec 25, 2021

Answer To: An economist wants to find a 90% confidence interval for the mean sale price of houses in a state....

Robert answered on Dec 25 2021

128 Votes

Sample Size for 90% CI, E = 3500 and σ = 31500
Confidence level = 90% and Desired Margin of Error, E = 3500.
Minimum sample size is given by:
P (|x̄− µ| < E) ≥ 1− α ⇒ P ( x̄− µ
σ/
√
n
< − E
σ/
√
n
) ≤ α/2
⇒ − E
σ/
√
n
≤ −zα/2 ⇒ n ≥
(
zα/2 × σ
E
)2
note: Margin of Error = (Length...

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An economist wants to find a 90% confidence interval for the mean sale price of houses in a state. How large a sample should she select so that the estimate is within $3500 of the population mean?...

Answer To: An economist wants to find a 90% confidence interval for the mean sale price of houses in a state....

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