A local company wants to evaluate their quality of service by surveying their customers. Their budget limits the number of surveys to 100. What is their maximum error of the estimated mean quality for a 95% level of confidence and an estimated standard deviation of 5?

Respuesta :

Answer: 0.98

Step-by-step explanation:

In statistics , the maximum error of the estimated mean is defined as the margin of error of the mean.

Formula to find the margin of error :-

[tex]E=z_{\alpha/2}\dfrac{\sigma}{\sqrt{n}}[/tex]

Given : Significance level : [tex]\alpha=1-0.95=0.05[/tex]

Critical value : [tex]z_{\alpha/2}=1.96[/tex]

Sample size : n=100

Standard deviation : [tex]\sigma=5[/tex]

Then , [tex]E=(1.96)\dfrac{5}{\sqrt{100}}=0.98[/tex]

Hence, the maximum error of the estimated mean quality for a 95% level of confidence and an estimated standard deviation of 5= 0.98