In: Statistics and Probability
A researcher wishes to estimate the proportion of adults who have high-speed Internet access. What size sample should be obtained if she wishes the estimate to be within 0.05 with 99% confidence if
(a) she uses a previous estimate of 0.54?
(b)she does not use any prior estimates?
Solution :
Given that,
margin of error = E = 0.05
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
(a)
= 0.54
1 - = 1 - 0.54 = 0.46
sample size = n = (Z / 2 / E )2 * * (1 - )
= (2.576 / 0.05)2 * 0.54 * 0.46
= 659.33
= 660
sample size = 660
(b)
= 0.5
1 - = 1 - 0.5 = 0.5
sample size = n = (Z / 2 / E )2 * * (1 - )
= (2.576 / 0.05)2 * 0.5 * 0.5
= 663.57
= 664
sample size = 664