In order to set rates, an insurance company is trying to estimate the number of sick days that full time workers
at an auto repair shop take per year. A previous study indicated that the standard deviation was 2.8 days. a)
How large a sample must be selected if the company wants to be 95% confident that the true mean differs from
the sample mean by no more than 1 day? b)Repeat part (a)using a 98% confidence interval. Which level of
confidence requires a larger sample size? Explain.

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The Answer of In order to set rates, an insurance company is trying to estimate the number of sick days that full time workers
at an auto repair shop take per year. A previous study indicated that the standard deviation was 2.8 days. a)
How large a sample must be selected if the company wants to be 95% confident that the true mean differs from
the sample mean by no more than 1 day? b)Repeat part (a)using a 98% confidence interval. Which level of
confidence requires a larger sample size? Explain.

In Order to Set Rates, an Insurance Company Is Trying