Question

Your firm wants to investigate how much money the typical tourist will spend on their next visit to new york. how many tourists should be included in your sample if you want to be 95% confident that the sample mean is within $18 from the population mean? from previous studies, we know that the standard deviation is $62.

Answer 1

To be 95% confident that the sample mean is within $18 from the population mean, you need to include at least 821 tourists in your sample.

Step-by-step explanation:

In order to determine how many tourists should be included in your sample to be 95% confident that the sample mean is within $18 from the population mean, you need to use the formula for sample size calculation:

n = (Z * σ / E)^2

Where:

• n is the required sample size
• Z is the Z-score corresponding to the desired confidence level. For a 95% confidence level, it is 1.96
• σ is the known standard deviation ($62 in this case)
• E is the desired margin of error ($18 in this case)

Plugging in the values:

n = (1.96 * 62 / 18)^2 = 28.628^2 = 820.45

Therefore, you should include at least 821 tourists in your sample to be 95% confident that the sample mean is within $18 from the population mean.