Sugar Creek Convenience Stores has commissioned a statistics firm to survey its customers in order to estimate the mean amount spent per customer. From previous records the standard deviation is believed to be

  $5. In its proposal to Sugar Creek, the statistics firm states that it plans to base the estimate for the mean amount spent on a sample of size 100 and use the 95% confidence level. Sugar Creek’s president has suggested that the sample size be increased to 400. If nothing else changes, what effect will this increase in the sample size have on the following:

a. The point estimate for the mean

b. The maximum error of estimation

c. The confidence interval The CEO wants the level of confidence increased to 99%. If nothing else changes, what effect will this increase in level of confidence have on the following:

d. The point estimate for the mean

e. The maximum error of estimation

f. The confidence interval