A national safety council wishes to estimate the proportion of automobile accidents that involve pedestrians. How large a sample of accident records must be examines to be 97% certain that the estimate has a margin of error four percentage points?
Solution :
Given that,
= 0.5
1 - = 1 - 0.5 = 0.5
margin of error = E = 4% = 0.04
At 97% confidence level the z is ,
= 1 - 97% = 1 - 0.97 = 0.03
/ 2 = 0.03 / 2 = 0.015
Z/2 = Z0.015 = 2.17
sample size = n = (Z / 2 / E )2 * * (1 - )
= (2.17 / 0.04)2 *0.5*0.5
= 735.77
sample size = 736
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