A tire manufacturer would like to estimate the average tire life
of its new? all-season light truck tire in terms of how many miles
it lasts. Determine the sample size needed to construct a 97?%
confidence interval with a margin of error equal to 2 comma 800
miles. Assume the standard deviation for the tire life of this
particular brand is 7 comma 000 miles.
The sample size ne
Solution :
Given that,
standard deviation = = 7,000
margin of error = E =2,800
At 97% confidence level the z is ,
= 1 - 97% = 1 - 0.97 = 0.03
/ 2 = 0.03 / 2 = 0.015
Z/2 = Z0.015 = 2.170
Sample size = n = ((Z/2 * ) / E)2
= ((2.170 * 7,000) / 2800)2
= 29.4306 = 29
Sample size = 29
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