Suppose a department store wants to estimate the mean age of the customers of its contemporary apparel department, correct to within 2 years, with level of confidence equal to 95%. Management believes that the standard deviation is 8 years. The sample size they should take is ________.

1 answer

To calculate the required sample size for estimating the mean age of the customers, we can use the formula for the sample size in estimating a population mean:

\[ n = \left( \frac{Z \cdot \sigma}{E} \right)^2 \]

Where:

  • \( n \) = sample size
  • \( Z \) = Z-value corresponding to the desired confidence level
  • \( \sigma \) = standard deviation of the population
  • \( E \) = margin of error (the desired accuracy)

Given:

  • Confidence level = 95% → Z-value for 95% confidence is approximately 1.96
  • Standard deviation (\( \sigma \)) = 8 years
  • Margin of error (\( E \)) = 2 years

Now we plug in the values into the formula:

\[ n = \left( \frac{1.96 \cdot 8}{2} \right)^2 \]

Calculating the numerator:

\[ 1.96 \cdot 8 = 15.68 \]

Now dividing by the margin of error:

\[ \frac{15.68}{2} = 7.84 \]

Now squaring that result:

\[ n = (7.84)^2 = 61.4656 \]

Since sample size must be a whole number, we round up to the next whole number:

\[ n \approx 62 \]

Therefore, the department store should take a sample size of 62 customers to estimate the mean age of the customers of its contemporary apparel department, correct to within 2 years at a 95% confidence level.