https://docs.google.com/spreadsheets/d/1PHMM6g62a870D5bGo2j4-RnIlpx3Yq1R4RS8cxjpZXw/edit?usp=sharing

Appropriate Sample Size ^^ Using the data in the Excel spreadsheet above ^^ solve the problem below.

The CEO of an insurance company is concerned that a sample of only 200 clients seems too small to draw reliable inferences from.

With concerns, of increasing the sample to 400 Americans would still be too small to provide accurate results. For a survey the company is intending to undertake next year, they would like your advice on the following:

a) Should a large sample be collected? Does the precision of an estimate increase when a large sample is being used?

b) What size sample should be taken to accurately estimate the average amount of claims per year to within 4,000 dollars?

You should include comparisons for 90%, 95% and 99% and recommendation to the appropriate sample size.