We intend to estimate the average driving time of a group of commuters. From a previous study, we believe that the average time is 42 minutes with a standard deviation of 10 minutes. We want our 90 percent confidence interval to have a margin of error of no more than plus or minus 2 minutes. What is the smallest sample size that we should consider

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Answer:

The smallest sample size that we should consider is 68.

Step-by-step explanation:

We have that to find our [tex]\alpha[/tex] level, that is the subtraction of 1 by the confidence interval divided by 2. So:

[tex]\alpha = \frac{1 - 0.9}{2} = 0.05[/tex]

Now, we have to find z in the Ztable as such z has a pvalue of [tex]1 - \alpha[/tex].

That is z with a pvalue of [tex]1 - 0.05 = 0.95[/tex], so Z = 1.645.

Now, find the margin of error M as such

[tex]M = z\frac{\sigma}{\sqrt{n}}[/tex]

In which [tex]\sigma[/tex] is the standard deviation of the population and n is the size of the sample.

Standard deviation of 10 minutes.

This means that [tex]\mu = 10[/tex]

What is the smallest sample size that we should consider?

This is n for which M = 2. So

[tex]M = z\frac{\sigma}{\sqrt{n}}[/tex]

[tex]2 = 1.645\frac{10}{\sqrt{n}}[/tex]

[tex]2\sqrt{n} = 1.645*10[/tex]

[tex]\sqrt{n} = 1.645*5[/tex]

[tex](\sqrt{n})^2 = (1.645*5)^2[/tex]

[tex]n = 67.7[/tex]

Rounding up:

The smallest sample size that we should consider is 68.

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