A Cost Accountant Wishes to Establish the Average Amount $\mu$ ,Spent by Executives Per Day on Travel and Lodging

question 134

Short Answer

A cost accountant wishes to establish the average amount, $\mu$ ,spent by executives per day on travel and lodging.The population standard deviation $\text { σ }$ = $29.The accountant wants to be 90-percent confident that the estimate, $\bar { x }$ ,obtained is within $7 of the true mean.How large a sample is needed if the company employs 263 executives?

Apply the concept of margin of error in determining sample size for a desired confidence interval precision.

Differentiate between confidence intervals with varying confidence levels and their implications on the margin of error.

Comprehend the relationship between the sample mean and the center of the confidence interval.

Understand the conversion of units and its impact on confidence interval calculations.

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