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We want to estimate the average purchasing cost of new cars purchased in the last six months. We want a margin error of $100 at a confidence level of 99%. After a preliminary deduction of 50 purchase costs, it is estimated the standard deviation at $725. Up to what sample size should we continue the investigation?

We want to estimate the average purchasing cost of new cars purchased in the last six months. We want a margin error of $100 at a confidence level of 99%. After a preliminary deduction of 50 purchase costs, it is estimated the standard deviation at $725. Up to what sample size should we continue the investigation?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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We want to estimate the average purchasing cost of new cars
purchased in the last six months. We want a margin
error of $100 at a confidence level of 99%. After
a preliminary deduction of 50 purchase costs, it is estimated
the standard deviation at $725. Up to what sample size should we
continue the investigation?

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