A Sample of Holiday Shoppers Is Taken Randomly from a Local

question 118

Short Answer

A sample of holiday shoppers is taken randomly from a local mall to determine the average daily spending on gifts. From a preselected sample, the standard deviation was determined to be $26. You would like to construct a 95% confidence interval for the mean daily spending on all holiday spending.
A) Find the appropriate sample size necessary to achieve a margin of error of $5.
B) Find the appropriate sample size necessary to achieve a margin of error of $8.

• A) Find the appropriate sample size necessary to achieve a margin of error of $5.
• B) Find the appropriate sample size necessary to achieve a margin of error of $8.

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Definitions:

Perfectly Competitive

A perfectly competitive market is characterized by many buyers and sellers, homogeneous products, free entry and exit, and perfect information.

Price Maker

A market participant with the power to influence the price of a good or service by controlling its supply, its demand, or both.

Perfect Competition

A market structure characterized by many buyers and sellers, where all firms sell identical products and no single buyer or seller can influence the market price.

Identical Goods

Products that are exactly the same in every aspect, leading consumers to have no preference for one product over another based on characteristics, brand, or quality.