The new governor wants to estimate the number of legally intoxicated drivers on a certain stretch of highway. How large a sample is needed in order to be 90% confident that the sample proportion will not differ from the true proportion by more than 4%.
Solution :
Given that,
= 1 - = 0.5
margin of error = E = 4% = 0.04
At 90% confidence level the z is,
= 1 - 90%
= 1 - 0.90 = 0.10
/2 = 0.05
Z/2 = Z 0.05 = 1.645
sample size = n = (Z / 2 / E )2 * * (1 - )
= ( 1.645 / 0.04 )2 * 0.5 * 0.5
= 422.81
sample size = n = 423
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