# Question: A confidence interval for a population mean is to be

A confidence interval for a population mean is to be estimated. The population standard deviation is guessed to be anywhere from 14 to 24. The half-width B desired could be anywhere from 2 to 7.

a. Tabulate the minimum sample size needed for the given ranges of σ and B.

b. If the fixed cost of sampling is $350 and the variable cost is $4 per sample, tabulate the sampling cost for the given ranges of and B.

c. If the cost of estimation error is given by the formula 10B2, tabulate the total cost for the given ranges of σ and B. What is the value of B that minimizes the total cost when = 14? What is the value of B that minimizes the total cost when σ = 24?

a. Tabulate the minimum sample size needed for the given ranges of σ and B.

b. If the fixed cost of sampling is $350 and the variable cost is $4 per sample, tabulate the sampling cost for the given ranges of and B.

c. If the cost of estimation error is given by the formula 10B2, tabulate the total cost for the given ranges of σ and B. What is the value of B that minimizes the total cost when = 14? What is the value of B that minimizes the total cost when σ = 24?

## Relevant Questions

A marketing manager wishes to estimate the proportion of customers who prefer a new packaging of a product to the old. He guesses that 60% of the customers would prefer the new packaging. The manager wishes to estimate the ...A company orders bolts in bulk from a vendor. The contract specifies that a shipment of bolts will be accepted by testing the null hypothesis that the percentage defective in the shipment is not more than 3% at an α of 5% ...An automobile manufacturer substitutes a different engine in cars that were known to have an average miles-per-gallon rating of 31.5 on the highway. The manufacturer wants to test whether the new engine changes the ...A study was undertaken to evaluate how stocks are affected by being listed in the Standard & Poor's 500 Index. The aim of the study was to assess average excess returns for these stocks, above returns on the market as a ...The theory of finance allows for the computation of "excess" returns, either above or below the current stock market average. An analyst wants to determine whether stocks in a certain industry group earn either above or ...Post your question