Determine the Sample Size Necessary for Estimating the Population Mean

question 8

Short Answer

Determine the Sample Size Necessary for Estimating the Population Mean within a Specified Margin of Error
-In order to set rates, an insurance company is trying to estimate the number of sick days that full time workers at a local bank take per year. A previous study indicated that the standard deviation was 2.5 days. a) How large a sample must be selected if the company wants to be 98% confident that the true mean differs from the sample mean by no more than 1 day b) Repeat part (a) using a 99% confidence interval. Which level of confidence requires a larger sample size Explain.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Discrimination

Unequal and unfavorable treatment of people belonging to distinct groups, usually on the grounds of their race, age, sex, or disabilities.

Stereotyping

Stereotyping is the act of ascribing a fixed set of characteristics to a group of people, disregarding individual differences.

Scapegoating

The act of blaming an individual or group for problems or negative outcomes, often unjustly.