Question

You want to estimate the mean gasoline price within your town to the margin of error of 5 centavos. Local newspaper reports the standard deviation for gas price in the area is 25 centavos. What sample size is needed to estimate the mean gas prices at 95% confidence level?

A. 87
B. 97
C. 107
D. 117

Answer 1

The sample size that is needed to estimate the mean gas prices at 95% confidence level is 97.

How is the sample size determined?

= 1.95^2× (25%)^2/(5%)^2

= 1.95^2 × 0.0625/0.0025

= 3.8025 × 25

= 95.0625

= 95

Hence, the sample size that is needed to estimate the mean gas prices is 97.

Therefore, the Option B is correct.

Read more about sample size

brainly.com/question/1916235

#SPJ1