Question

A toy manufacturer wants to know how many new toys children buy each year. Assume a previous study found the standard deviation to be 1.5. She thinks the mean is 6.9 toys per year. What is the minimum sample size required to ensure that the estimate has an error of at most 0.1 at the 80% level of confidence? Round your answer up to the next integer.

Answer #1

Population standard deviation = 1.5

Margin of error =E=0.1

Level of significance = 1-0.80=0.2

Z critical value is (by using Z table)=
1.282

Sample size formula is

=369.79

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