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In an effort to lure vacationers to exotic locations, several vacation packages to world-class golf destinations, such as Scotland, New Zealand, and Maui, are offered by the major airlines and vacation agencies. The prices for such packages have a standard deviation of $700. Suppose that a travel agency, World Golf Travels, wants to put together its own exotic golf packages and wants to be 90% confident of the prices charged by other travel agencies.
What sample size would be necessary to estimate the mean price within $250?
Using the sample size from part a., construct a 90% confidence interval for the mean price of an exotic golf vacation. Assume that the sample conducted above in a revealed a sample mean price of $3,000.
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