Yolanda closed on a 20 year home loan for $83,000. she chooses to buy only 1 point at closing. by buying a point at her closing,
2 answers:
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Answer:
The smallest sample size n that will guarantee at least a 90% chance of the sample mean income being within $500 of the population mean income is 48.
Step-by-step explanation:
The complete question is:
The mean salary of people living in a certain city is $37,500 with a standard deviation of $2,103. A sample of n people will be selected at random from those living in the city. Find the smallest sample size n that will guarantee at least a 90% chance of the sample mean income being within $500 of the population mean income. Round your answer up to the next largest whole number.
Solution:
The (1 - <em>α</em>)% confidence interval for population mean is:
The margin of error for this interval is:
The critical value of <em>z</em> for 90% confidence level is:
<em>z</em> = 1.645
Compute the required sample size as follows:
Thus, the smallest sample size n that will guarantee at least a 90% chance of the sample mean income being within $500 of the population mean income is 48.