A tornado has blown through a section of Collinsville. The insurance adjuster wants to estimate the average claim to within $500. If the standard deviationis believed to be $1600 and the company wants to be 99% sure of their figures, how large a sample must be taken?
Please see the attachment.
From the condition, we know
The marginal …
The normal distribution in a large sample are provided. The solution answers the question(s) below.