A Research Firm Has Been Contracted to Estimate the Mean

question 4

Short Answer

A research firm has been contracted to estimate the mean weekly family expenditure on clothes.He believes that the standard deviation of the weekly expenditure is $125.Determine with 99% confidence the number of families that must be sampled to estimate the mean weekly family expenditure on clothes to within $15.

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Definitions:

Cash Surplus

A situation where a business or individual's income exceeds its expenditures, resulting in available cash for saving or spending.

Cash Balance

The amount of cash that a company or individual has on hand at any given time.

Minimum Cash Balance

Minimum Cash Balance is the least amount of cash a company aims to hold in its register or account to meet emergency needs or unforeseen expenses.

Sales Collection

The process of retrieving payment for goods or services provided, typically managed through invoicing and accounts receivable procedures.