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A union of restaurant and foodservice workers would like to estimate the mean hourly wage, μ, of foodservice workers in the U.S. The union will choose a random sample of wages and then estimate μ using the mean of the sample. What is the minimum sample size needed in order for the union to be 99% confident that its estimate is within $0.35 of μ? Suppose that the standard deviation of wages of foodservice workers in the U.S. is about $2.10.Carry your intermediate computations to at least three decimal places. Write your answer as a whole number (and make sure that it is the minimum whole number that satisfies the requirements).(If necessary, consult a list of formulas.)

Question

A union of restaurant and foodservice workers would like to estimate the mean hourly wage, μ, of foodservice workers in the U.S. The union will choose a random sample of wages and then estimate μ using the mean of the sample. What is the minimum sample size needed in order for the union to be 99% confident that its estimate is within 0.35ofμ?SupposethatthestandarddeviationofwagesoffoodserviceworkersintheU.S.isabout0.35 of μ? Suppose that the standard deviation of wages of foodservice workers in the U.S. is about 2.10.Carry your intermediate computations to at least three decimal places. Write your answer as a whole number (and make sure that it is the minimum whole number that satisfies the requirements).(If necessary, consult a list of formulas.)

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Solution

To find the minimum sample size needed, we can use the formula for the sample size in estimating a population mean:

n = (Zα/2 * σ/E)^2

where:

  • n is the sample size
  • Zα/2 is the z-value from the standard normal distribution for the desired confidence level (for 99% confidence, Zα/2 = 2.576)
  • σ is the standard deviation of the population (in this case, $2.10)
  • E is the desired margin of error (in this case, $0.35)

Substituting the given values into the formula, we get:

n = (2.576 * 2.10/0.35)^2

Solving this equation will give us the minimum sample size needed.

Let's calculate:

n = (2.576 * 2.10/0.35)^2 n = (15.312)^2 n = 234.256

Since we can't have a fraction of a person, we round up to the nearest whole number. Therefore, the minimum sample size needed is 235.

This problem has been solved

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