It's believed that as many as 21% of adults over 50 never graduated from high school. We wish to see if this percentage is the same among the 25 to 30 age group. a) How many of this younger age group must we survey in order to estimate the proportion of non-grads to within 6% with 90% confidence?
Solution :
Given that,
= 0.21
1 - = 1 - 0.21 = 0.79
margin of error = E = 6% = 0.06
At 90% confidence level the z is ,
= 1 - 90% = 1 - 0.90 = 0.10
/ 2 = 0.10 / 2 = 0.05
Z/2 = Z 0.05 = 1.645
sample size = n = (Z / 2 / E )2 * * (1 - )
= (1.645 / 0.06)2 * 0.21 * 0.79
= 124.7 = 125
sample size = 125
125 of this younger age group must we survey .
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