Question

An event promoter is planning to finance a music festival for the summer. he wants to determine how much to charge people for an all-day pass. how many people should he survey if he wants to be within 3 dollars from the mean? use a 99% confidence level. from past studies, he knows the standard deviation is $20.

Answer 1

To determine how many people the event promoter should survey, we can use the formula for sample size calculation.

Step-by-step explanation:

To determine how many people the event promoter should survey, we can use the formula for sample size calculation:

n = (z * s) / E

Where:

• n is the sample size required
• z is the z-score corresponding to the desired confidence level
• s is the standard deviation
• E is the maximum error tolerance or margin of error

In this case, we want to be within $3 of the mean and use a 99% confidence level. The z-score corresponding to a 99% confidence level is approximately 2.33. The standard deviation given is $20. Plugging these values into the formula, we get:

n = (2.33 * 20) / 3 ≈ 15.53

Therefore, the event promoter should survey at least 16 people to be within $3 of the mean with a 99% confidence level.