Using the formula (provided below) for sample size determination, answer the following numerical questions.
n=z2XSD2/E2 ; Where SD= standard deviation of the sample observations; value of confidence interval (Z) at 95% level is 1.96.
A store manager for Barnes and Noble wants to run a study to determine how such a household pays per month on novels. The manager wants to obtain estimates within a 10% margin of error. Past research has shown that the average monthly spending on novels is $10 and has a standard deviation of $1. What sample size will the manager need for a reliable estimate with a 95% level of confidence.