You want to obtain a sample to estimate how much parents spend on their kids birthday parties. Based on previous study, you believe the population standard deviation is approximately σ=44.1 dollars. You would like to be 90% confident that your estimate is within 1 dollar(s) of average spending on the birthday parties. How many parents do you have to sample?

Answer :

Answer:

At least 5263 adults need to be surveyed.

Step-by-step explanation:

We have that to find our [tex]\alpha[/tex] level, that is the subtraction of 1 by the confidence interval divided by 2. So:

[tex]\alpha = \frac{1-0.9}{2} = 0.05[/tex]

Now, we have to find z in the Ztable as such z has a pvalue of [tex]1-\alpha[/tex].

So it is z with a pvalue of [tex]1-0.05 = 0.95[/tex], so [tex]z = 1.645[/tex]

Now, find the margin of error M as such

[tex]M = z*\frac{\sigma}{\sqrt{n}}[/tex]

How many parents do you have to sample?

We need to survey at least n parents.

n is found when [tex]M = 1, \sigma = 44.1[/tex]

So

[tex]M = z*\frac{\sigma}{\sqrt{n}}[/tex]

[tex]1 = 1.645*\frac{44.1}{\sqrt{n}}[/tex]

[tex]\sqrt{n} = 1.645*44.1[/tex]

[tex](\sqrt{n})^{2} = (1.645*44.1)^{2}[/tex]

[tex]n = 5262.7[/tex]

Rounding up

At least 5263 adults need to be surveyed.

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