Question

Suppose the average commute time of your employees is unknown. The standard deviation of their commute time is estimated as 24.5 minutes. How many employees must be included in a sample to create a 90 percent confidence interval for the average commute time with a confidence interval width of no more than 13 minutes

Answer 1

The number of employees is 91.

According to the statement

Given that the standard deviation = 24.5

The width in the question = 13

We solve for the margin of error E.

E = width / 2

E= 13/2 = 6.5

At 90%

Alpha = 1-0.90

= 0.1

Alpha/2 = 0.1/2 = 0.05

Z 0.05 = 1.576

Now find the Sample size n

= ((1.576x24.5)/2)²

= 90.8

= 91

So, The number of employees is 91.

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