A preliminary sample of holiday shoppers revealed that the standard deviation of the amount of money they are planning to spend on gifts during the coming holiday season is $80. How many holiday shoppers should be sampled in order to estimate the average amount of money spent on gifts by all holiday shoppers with a margin of error of $7 and with a 99% confidence

So the answer for this case would be n=870 rounded up to the nearest integer

Step-by-step explanation:

Information given

represent the deviation

ME = 7 represent the margin of error

Solution

The margin of error is given by this formula:

   (a)

And on this case we have that ME =7 and we are interested in order to find the value of n, if we solve n from equation (a) we got:

  (b)

The critical value for 99% of confidence interval now can be founded using the normal distribution. The significance level would be and . The critical value would be , replacing into formula (b) we got:

So the answer for this case would be n=870 rounded up to the nearest integer

The effect that this will have on the country's trade balance is called the trade deficit. Trade deficit is defined as an economic condition wherein the country is importing more goods than exporting. This deficit is equal to the value of imported goods minus the value of exported goods and this puts this would result in the uncertainty of the country's currency.