Answer:
a) 92% Confidence interval: (1027.5,1048.5)
b) Sample size = 100
Step-by-step explanation:
We are given the following in the question:
Sample mean, [tex]\bar{x}[/tex] = 1038
Sample size, n = 25
Alpha, α = 0.08
Population standard deviation, σ = 30
a) 92% Confidence interval:
[tex]\mu \pm z_{critical}\frac{\sigma}{\sqrt{n}}[/tex]
Putting the values, we get,
[tex]z_{critical}\text{ at}~\alpha_{0.08} = \pm 1.75[/tex]
[tex]1038 \pm 1.75(\frac{30}{\sqrt{25}} ) = 1038 \pm 10.5 = (1027.5,1048.5)[/tex]
b) In order to reduce the confidence interval by half, we have to quadruple the sample size.
Thus,
[tex]\text{Sample size} = 25\times 4 = 100[/tex]