Suppose youwant toconduct a study of dog owners to examinehow much theypaid for dog food and treats over the past year. Your research team desires the error(E)to be nolarger than $35andexpects that the standard deviation will be$300.

(a) Based on a 95% confidence level, calculate the minimum sample size that would limit the error to $35. Show the steps to your work.

(b) Suppose your budget limited the sample size to a maximum of 100 participants. If you wish to use a 95% confidence level, what would be the magnitude of potential error in this study? Assume the standard deviation is still $300.

(c) Suppose the standard deviation is actually higher in $300 in reality. Would this be a reason to increase or decrease the sample size? Explain.

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