## Question

###### Questiou 8 (Total:4 marks) A Superstore is interested in estimating the average annual expenditure on extended health for employees in the industry. In a pilot study, a random sample of 15 stores was chosen_ The mean annual expenditure was found to be $251.50 with a sample standard deviation of $9.49. Assume that the distribution across different stores in the industry is normally distributed.A) On the basis of the pilot study, determine a 99% confidence interval for |4, the actual mean annual

Questiou 8 (Total:4 marks) A Superstore is interested in estimating the average annual expenditure on extended health for employees in the industry. In a pilot study, a random sample of 15 stores was chosen_ The mean annual expenditure was found to be $251.50 with a sample standard deviation of $9.49. Assume that the distribution across different stores in the industry is normally distributed. A) On the basis of the pilot study, determine a 99% confidence interval for |4, the actual mean annual expenditure 0n benefits. marks) B) The firm wants its results to be accurate within $1.50 with 95% confidence. How large a sample size does the firm need to take? (2 marks) (Must use Z, not t_ This will be fine as long as n is greater than 30.)

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