Bruce bought his car for $24,380. It is expected to depreciate an average of 14% each year during the first 6 years.
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Answer:
The 95% confidence interval obtained with a sample size of 64 will give greater precision.
Step-by-step explanation:
We are given the following in the question:
A 95% confidence interval is calculated with the following sample sizes
The population mean and standard deviation are unknown.
Effect of sample size on confidence interval:
- As the sample size increases the margin of error decreases.
- As the margin of error decreases the width of the confidence level decreases.
- Thus, with increased sample size the width of confidence level decreases.
If we want a confidence interval with greater precision that is smaller width, we have to choose the higher sample size.
Thus, the 95% confidence interval obtained with a sample size of 64 will give greater precision.