In: Statistics and Probability
7. In the planning stage, a sample proportion is estimated as pˆp^ = 72/80 = 0.90. Use this information to compute the minimum sample size n required to estimate p with 95% confidence if the desired margin of error E = 0.05. What happens to n if you decide to estimate pwith 90% confidence? (You may find it useful to reference the z table. Round intermediate calculations to at least 4 decimal places and "z" value to 3 decimal places. Round up your answers to the nearest whole number.)
Confidence Level --- N
95% = ?
90% = ?
solution:
Given that,
= 0.90
1 - = 1 - 0.90 = 0.10
margin of error = E = 0.05
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 * 0.05)2 * 0.90 * 0.10
= 138.2976
Sample size = 138
(b)at 90% confidence level the z is ,
= 1 - 90% = 1 - 0.90 = 0.10
/ 2 = 0.10 / 2 = 0.05
Z/2 = Z0.05 = 1.645
Sample size = n = (Z/2 / E)2 * * (1 - )
= (1.645 * 0.05)2 * 0.90 * 0.10
= 97.41
Sample size = 97