# Car Insurance Savings

Car insurance savings. A market researcher wants to evaluate car insurance savings at a competing company. Based on past studies he is assuming that the standard deviation of savings is \$100. He wants to collect data such that he can get a margin of error of no more than \$10 at a 95% confidence level. How large of a sample should he collect?

SAT scores. The standard deviation of SAT scores for students at a particular Ivy League college is 250 points. Two statistics students, Raina and Luke, want to estimate the average SAT score of students at this college as part of a class project. They want their margin of error to be no more than 25 points.

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(a) Raina wants to use a 90% confidence interval. How large a sample should she collect?

(b) Luke wants to use a 99% confidence interval. Without calculating the actual sample size, determine whether his sample should be larger or smaller than Raina’s, and explain your reasoning.

(c) Calculate the minimum required sample size for Luke.