Mark wants to find a mean repair cost of cars, so he does research. If the sample size he is studying is 120 cars, the standard deviation of the cost of car repairs is $56. Is he uses a 99% confidence level, what is the margin of error for the population mean? Round your answer to the nearest hundredth. Use the table to find the critical value. (1 point) The margin of error is

1 answer

To calculate the margin of error for the population mean at a 99% confidence level, you can use the formula:

\[ E = z \times \left(\frac{\sigma}{\sqrt{n}}\right) \]

Where:

  • \(E\) is the margin of error.
  • \(z\) is the critical value for the confidence level.
  • \(\sigma\) is the standard deviation.
  • \(n\) is the sample size.

First, let's find the critical value \(z\) for a 99% confidence level. For a 99% confidence level, the critical z-value is approximately 2.576.

Now plug in the values into the formula:

  • \(\sigma = 56\)
  • \(n = 120\)
  1. Calculate the standard error (\(SE\)): \[ SE = \frac{\sigma}{\sqrt{n}} = \frac{56}{\sqrt{120}} \approx \frac{56}{10.954} \approx 5.11 \]

  2. Now calculate the margin of error \(E\): \[ E = z \times SE = 2.576 \times 5.11 \approx 13.18 \]

Rounding to the nearest hundredth, the margin of error is:

\[ \text{Margin of Error} \approx 13.18 \]

Thus, the margin of error for the population mean is $13.18.