The United States has over 310 million residents. Suppose that you want to estimate the proportion of Americans who ate breakfast this morning to within a margin-of-error of 3 percentage points with 95% confidence. About how many people would you need to randomly sample? (Assume all selected will respond to the survey.)
Solution :
Given that,
= 0.5 ( when estimate is not given then use 0.5)
1 - = 1 - 0.5 = 0.5
margin of error = E = 3% = 0.03
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 /0.03)2 * 0.5 * 0.5
= 1067.11 = 1067
Sample size = 1067
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