You Are Attempting to Estimate the Average Amount a Family

question 55

Essay

You are attempting to estimate the average amount a family spends on food during a year.In the past,the standard deviation of the amount a family has spent on food during a year has been approximately $1200.If you want to be 99% sure that you have estimated average family food expenditures within $60,how many families do you need to survey?

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Definitions:

Appreciate

To increase in value or price over a period of time.

Freely Flexible Exchange Rates

A currency system where the value of a currency is allowed to fluctuate according to the foreign exchange market without direct government intervention.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports of them.

Peso Price

The value of a good or service expressed in pesos, the currency of various Latin American countries.