An advertising agency that manages a major radio station wants to estimate the mean amount of time that the station’s audience spends listening to the radio on a daily basis. From past studies, the standard deviation is assumed to be 20 minutes. What sample size is needed if the agency wants to have a 95% confidence interval with a margin of error equal to 5 minutes?

So the answer for this case would be n=62 rounded up to the nearest integer

Step-by-step explanation:

Previous concepts

A confidence interval is "a range of values that’s likely to include a population value with a certain degree of confidence. It is often expressed a % whereby a population means lies between an upper and lower interval".

The margin of error is the range of values below and above the sample statistic in a confidence interval.

Normal distribution, is a "probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean".

represent the sample mean for the sample  

population mean (variable of interest)

represent the population standard deviation

n represent the sample size  

Solution to the problem

The margin of error is given by this formula:

   (a)

And on this case we have that ME =5 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 95% of confidence interval now can be founded using the normal distribution. And in excel we can use this formla to find it:"=-NORM.INV(0.025;0;1)", and we got , replacing into formula (b) we got:

So the answer for this case would be n=62 rounded up to the nearest integer