A student wants to determine if the population of his state
prefers Pepsi to Coke. The estimate
of the population proportion is to be within plus or minus .10,
with a 90% level of confidence.
From a previous study in another state, he saw that 353 out of 500
people in that study
preferred Pepsi.
How large of a sample is required?
Solution :
Given that,
= 353/500=0.706
1 - = 1 - 0.706 = 0.294
margin of error = E = 0.10
At 90% confidence level z
= 1 - 90%
= 1 - 0.90 =0.10
/2
= 0.05
Z/2
= Z0.05 = 1.645
Sample size = n = (Z/2 / E)2 * * (1 - )
= (1.645 / 0.10)2 * 0.706* 0.294
=56.16
Sample size = 56
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