In: Statistics and Probability
"Narrative : Health and Human Services Commission (HHSC) survey of health insurance Problem statement: Kaiser Family Foundation estimated that in 2015 17% of Texans did not have health insurance. HHSC wants to update this number. Assuming a margin of error of 0.03, what should be the sample size at: a) 95% confidence level? b) 99% confidence level?"
Solution :
Given that,
= 17% = 0.17
1 - = 1 - 0.17= 0.83
margin of error = E = 0.03
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
Z/2 = Z0.025 = 1.96
Sample size = n = (Z/2 / E)2 * * (1 - )
= (1.96 / 0.03)2 * 0.17 * 0.83
= 622
Sample size = 622
Solution :
Given that,
= 17% = 0.17
1 - = 1 - 0.17= 0.83
margin of error = E = 0.03
At 99% confidence level the z is ,
= 1 - 99% = 1 - 0.99 = 0.01
/ 2 = 0.01 / 2 = 0.005
Z/2 = Z0.005 = 2.576
Sample size = n = (Z/2 / E)2 * * (1 - )
= (2.576 / 0.03)2 * 0.17 * 0.83
= 1040
Sample size =1040