# Question

Suppose you have been following a particular airline stock for many years. You are interested in determining the average daily price of this stock in a 10-year period and you have access to the stock reports for these years. However, you do not want to average all the daily prices over 10 years because there are several thousand data points, so you decide to take a random sample of the daily prices and estimate the average. You want to be 90% confident of your results, you want the estimate to be within $2.00 of the true average, and you believe the standard deviation of the price of this stock is about $12.50 over this period of time. How large a sample should you take?

## Answer to relevant Questions

Suppose you want to estimate the proportion of cars that are sport utility vehicles (SUVs) being driven in Kansas City, Missouri, at rush hour by standing on the corner of I-70 and I-470 and counting SUVs. You believe the ...A company has developed a new light bulb that seems to burn longer than most residential bulbs. To determine how long these bulbs burn, the company randomly selects a sample of these bulbs and burns them in the laboratory. ...Use the data given to test the following hypotheses. Assume the data are normally distributed in thepopulation.The American Water Works Association estimates that the average person in the United States uses 123 gallons of water per day. Suppose some researchers believe that more water is being used now and want to test to determine ...Based on population figures and other general information on the U.S. population, suppose it has been estimated that, on average, a family of four in the United States spends about $1,135 annually on dental procedures. ...Post your question

0