A local company wants to evaluate their quality of service by surveying their customers. Their budget limits the number of surveys to 100. What is their maximum error of the estimated mean quality for a 95% level of confidence and an estimated standard deviation of 5?
A) 0.9604
B) 0.9920
C) 1.96
D) 5%

Question

Quizplus · Accepted Answer

The maximum error (margin of error) for a 95% confidence level is calculated using the formula: Margin of Error = Z * (σ/√n), where Z is the Z-score for 95% confidence (approximately 1.96), σ is the standard deviation (5), and n is the sample size (100). Thus, Margin of Error = 1.96 * (5/√100) = 0.98, which is closest to 0.9920.

A Local Company Wants to Evaluate Their Quality of Service