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Answer: 62
A 95% confidence interval for the mean μ, assuming normal distribution = X̄ ± 1.96σ/√n Since σ = 200, we need to find the value of n such that: 1.96 * σ/√n = 50 1.96 * 200 = 50√n 392 = 50√n √n = 7.84 n = 61.4656 ≈ 62 Therefore, the required sample size is 62.
Author: Nikitesh Somanthe
An auto insurance company intends to establish the mean claim amount demanded by policyholders who own SUVs. After extensive analysis of past records, the company believes the standard deviation of such claims is about $200. The company wishes to construct a 95% confidence interval for the mean claim amount such that the interval is of width "±$50". Determine the value of n, the sample size that would be required to achieve this.
A
62
B
100
C
30
D
124
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