As the newly hired manager of a company that provides cell phone services, you want to determine the percentage of adults in your state who live in a household with cell phones and no land-line phones. How many adults must you survey?

As the newly hired manager of a company that provides cell phone services, you want to determine the percentage of adults in your state who live in a household with cell phones and no land-line phones. How many adults must you survey? Assume that you want to be 90% confident that the sample percentage is within three percentage points of the true population percentage.

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Expert Solution

Given that,

= 0.5

1 - = 1 - 0.5= 0.5

margin of error = E = 3% = 0.03

At 90% confidence level

= 1 - 90%

= 1 - 0.90 =0.10

/2 = 0.05

Z/2 = Z0.05 = 1.645 ( Using z table )

Sample size = n = (Z/2 / E)2 * * (1 - )

= (1.645 / 0.03)2 * 0.5 * 0.5

=751.673

Sample size = 752

orchestra answered 2 years ago

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