College

Sales of a new line of athletic footwear are crucial to the success of a newly formed company, Fleet Shoes. Fleet wishes to estimate the average weekly sales of the new footwear within $200 with 95% reliability. The initial sales indicate the standard deviation of the weekly sales figures to be approximately $1,500.

How many weeks of data must be sampled for Fleet to get the information it desires?

Answer :

Final answer:

To estimate the average weekly sales of the new footwear within $200 with 95% reliability, Fleet Shoes needs a sample size of at least 15 weeks of data.

Explanation:

To estimate the average weekly sales of the new footwear within $200 with a 95% reliability, we need to determine the sample size needed.

Using the formula:

n = (Z * σ) / E

Where:

n = sample size

Z = z-score for the desired level of confidence (in this case, 95%)

σ = standard deviation

E = margin of error (in this case, $200)

Plugging in the values, we get:

n = (1.96 * 1500) / 200 = 14.7 (approx.)

Rounding up, we need a sample size of at least 15 weeks of data.

Learn more about Sample Size Estimation here:

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Answer:

The number of weeks required = 216 weeks

Step-by-step explanation:

Given that:

Margin of Error E = 200

Confidence interval = 95% = 0.95

Level of SIgnificance = 1 - C.I

= 1 - 0.95

= 0.05

Standard deviation = 1500

The Critical value for Z :

[tex]Z_{\alpha/2} =Z_{0.05/2} \\ \\ = Z_{0.025} = 1.96[/tex]

The number of weeks( i.e the sample size (n) ) required is :

[tex]n = (\dfrac{Z_{\alpha/2} \times \sigma}{E})^2[/tex]

[tex]n = (\dfrac{1.96 \times 1500}{200})^2[/tex]

[tex]n = (14.7)^2[/tex]

n = 216.09

n ≅ 216 weeks

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