The answer to this problem needs to be calculated using excel: Thank you! UO Lux

Question

The answer to this problem needs to be calculated using excel: Thank you!

UO Luxury is a residential rental company that advertises that the average cost of a rental for undergraduate students at the University of Oregon is $525 with a standard deviation of $95 (Assume that rental costs are approximately Normally distributed). The Department of Consumer Protection will fine the company if, when it chooses a sample of students, they find that the average rental cost for those students is $600 or more.

1c.

Assuming the company is advertising truthfully, how many students would the Department of Consumer Protection need to investigate in order to ensure there is less than a .01% chance that the company is fined?

Explanation / Answer

here margin of errror E =600-525=75

for 0.01% confidence ; z =3.7190

std deviation =95

therefore sample size required =(z*std deviation/E)2 =~23

please revert for any clarificaiton required

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.