The Bureau of Labor Statistics is planning the next yearly survey to determine the average cost of a summer vacation for a US family.
The following standards have been set: a confidence level of 95% and an error of less than $100. Past research has indicated that the standard deviation should be $656.
What is the required sample size?
What would happen to your results if you use a sample smaller than the required sample size?
What would be the required sample size if the BLS standards specify a 99% confidence level instead?
(You can either do the calculations on your own, or use the "Calculating required sample size" Excel template).