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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Cash

Money in the form of coins or banknotes, especially that used to pay for goods or services.

Special Kind

A unique or particular type or category that stands out from others.

Draft

An instrument validating an order by a drawer to a drawee to pay a payee.

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the laws across the states.