8.44

A group of investors wants to develop a chain of fast-food restaurants. In determining potential costs for each facility, they must consider, among other expenses, the average monthly electric bill. They decide to sample some fast-food restaurants currently operating to estimate the monthly cost of electricity. They want to be 90% confident of their results and want the error of the interval estimate to be no more than $100. They estimate that such bills range from $600 to $2500. How large a sample should they take?

 

E = $100

 

90% = .45 è 4500 è z = 1.645 from Table A.5