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Q1) Consumer group would like to evaluate average amount of PG&E bill for month of March for single family homes in San Francisco Bay Area. Based on studies conducted in other same climate cities, standard deviation is supposed to be $25. Group would like to evaluate average March bill to be with 5 of population average with 95% level confidence.

 

Determine the sample size needed.

 

a) 166

 

b) 97

 

c) 158

Q2) If confidence level is increased to 99%, would sample size required increase or decrease?

 

a) Increase to 166

 

b) Stays the same

 

c) Decrease to 58

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