Is sample large enough to give the margin of error

Assignment Help Basic Statistics

Reference no: EM13119190

In investment firm with 10,000 clients would like to acurately forecast the avg dollar anmount their current customers will deposit over the coming year. They decide to telephone a random selection of 25 of their customer to ask how much they plan to deposit, and they would like to keep this sample as small as possible so that the calls do not annoy too many people. Since they will be multiplying this avg by the total number of customers to get an overall forecast, they would like to accurately estimate the avg with a margin of error of less than $4,000.00.Last year the average deposit for all 10,000 clients was $25,000 with a standard deviation of $30,000. Do you think a sample of 25 is large enough to give them the margin of error they want? If not, how large a sample do you suggest they take? Justify your answer with relevant calculations.

Reference no: EM13119190

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