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:

Net Of Tax

The amount remaining after the effect of taxes has been accounted for.

Contingent Asset

A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.

Convertible Notes

A financial instrument issued by companies that can be converted into equity, usually at the discretion of the holder or at specific future events.

Interest Expense

The cost incurred by an entity for borrowed funds, representing the price paid for the use of a lender's money or credit.