SOLUTION: I need your help with the following problem :
Sales of a new line of athletic footwear are crucial to the success of a company. The company wishes to estimate the average week
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Sales of a new line of athletic footwear are crucial to the success of a company. The company wishes to estimate the average week
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Question 1030448: I need your help with the following problem :
Sales of a new line of athletic footwear are crucial to the success of a company. The company wishes to estimate the average weekly sales of the new footwear to within $300 with 99% reliability. The initial sales indicate that the standard deviation of the weekly sales figures is approximately $1100. How many weeks of data must be sampled for the company to get the information it desires?
Margin of error: 2.575 x 1100/Square root of n < 300
(2.575 x 1100/300) ^2 = 89.14
therefore n has to be either bigger or equal to 89.14
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t df=unknown*s/sqrt (n)
using z as an approximation you get the result you got.
I would look at df=90 which is 2.63
2.63(11/3)=92.99.
n >92 or at least 93. Sample sizes must be integers.
