A sample of 20 pages was taken from a Yellow Pages directory. On each page, the
ID: 3230091 • Letter: A
Question
A sample of 20 pages was taken from a Yellow Pages directory. On each page, the mean area devoted to display ads was measured (a display ad is a large block of multicolored illustrations, maps, and text). The data (in square millimeters)are shown below: 0 260 356 403 536 268 369 428 536 268 396 469 536 162 338 403 536 536 130 (a) Construct a 95percent confidence interval for the true mean. (b)What sample size would be needed to obtain an error (If t 20 square millimeters with95 percent confidence? (Data are based on a project by MBA student Daniel R. Dalach.) Display AdsExplanation / Answer
Solution:
Part a
Here, we have to find 90% confidence interval for the population mean.
Confidence interval = Xbar -/+ t*S/sqrt(n)
From the given data, we have
Sample mean = Xbar = 346.5
Sample standard deviation = S = 170.3783715
Sample size = n = 20
Degrees of freedom = n - 1 = 20 – 1 = 19
Confidence level = 90%
Critical t value = 1.7291
Lower limit = Xbar - t*S/sqrt(n)
Lower limit = 346.5 - 1.7291*170.3783715/sqrt(20) = 280.6252
Upper limit = Xbar + t*S/sqrt(n)
Upper limit = 346.5 + 1.7291*170.3783715/sqrt(20) =412.3748
Confidence interval = (280.62, 412.38)
Part b
Here, we have to find sample size.
Sample size formula is given as below:
n = (Z*/E)^2
Here, we assume estimate for = 170.3783715
We are given
Confidence level = 90%
Critical Z value = 1.6449
Sampling error = E = 20
n = (1.6449*170.38/20)^2 = 196.3615
n = 197
Required sample size = 197