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 estimate the mean age of customers within a specified margin of error with a given level of confidence, we can use the formula for the sample size (\( n \)) required for estimating a population mean:

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

Where:

  • \( Z \) is the z-value corresponding to the desired confidence level,
  • \( \sigma \) is the population standard deviation,
  • \( E \) is the margin of error.

Given:

  • Level of confidence = 95%, which corresponds to a z-value (\( Z \)) of approximately 1.96 (since the critical value for a 95% confidence level is 1.96).
  • Standard deviation (\( \sigma \)) = 8 years.
  • Margin of error (\( E \)) = 2 years.

Now, substituting the known values into the formula:

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

Calculating the inside of the parentheses first:

\[ \frac{1.96 \cdot 8}{2} = \frac{15.68}{2} = 7.84 \]

Now squaring that result:

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

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

\[ n \approx 62 \]

Therefore, the department store should take a sample size of 62 customers.