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    Confidence interval for the population mean

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    Families USA, a monthly magazine that discusses issues related to health and health costs, surveyed 20 of its subscribers. It found that the annual health insurance premiums for a family with coverage through an employer averaged $10,979. The standard deviation of the sample was $1,000.
    a. Based on this sample information, develop a 90 percent confidence interval for the population mean yearly premium.
    b. How large a sample is needed to find the population mean within $250 at 99 percent confidence?

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    Solution Summary

    This solution finds a 90 percent confidence interval for the population mean and shows how to find the sample size necessary to be 99 percent confident that the margin of error is within a stated bound.