They would like the estimate to have a maximumm error of 0.14 gallons. a previous study found that for an average family the variance is 1.69 gallons and the mean is 15.9 gallons per day. If they are using a 85% level of confidence how large is the sample is required to estimate the man usage of water round to next integer
Solution
standard deviation =1.69=1.3
Margin of error = E =
At 85% confidence level the z is ,
= 1 - 85% = 1 - 0.85 = 0.15
/ 2 = 0.15/ 2 = 0.075
Z/2 = Z0.075 = 1.44( Using z table ( see the 0.025 value in standard normal (z) table corresponding z value is 1.96 )
sample size = n = [Z/2* / E] 2
n = ( 1.44* 1.3 / 0.14 )2
n =179
Sample size = n =179
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