When determining the sample size required to estimate , we always round the value of n up to the next whole number. Explain why we do so. (b) An estimate is needed of the mean acreage of farms in Ontario, Canada. A 95% confidence interval should have a margin of error of 25 acres. A study ten years ago in this province had a sample standard deviation of 200 acres for farm size. About how large a sample of farms is needed? (c) After randomly sampling 100 students in the student union to find out how many credit hours they were taking, a researcher constructed a confidence interval of (13.905, 15.095). Given that s = 3, what confidence level was the researcher using?
(a) We round the value of n, as a sample size cannot be in fractions (or decimals), irrespective whether the sample are living or non-living. Samples will have to take on positive, integer values.
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(b) Given ME = 25 acres, = 200 acres, = 0.05
The Zcritical at = 0.05 is 1.96
The ME is given by :
ME = Zcritical * \frac{\sigma}{\sqrt{n}}
Squaring both sides we get: (ME)2 = (Z critical)2 * 2/n
Therefore n = (Zcritical * /ME)2 = (1.96*200/25)2 = 245.8624
Therefore n = 246 (Taking it to the next whole number)
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(c) The Confidence interval is given by ME
ME = tc * Standard error, where the standard error = s/Sqrt(n)
We use tc values as population standard deviation is unknown.
Here given that s = 3, n = 100, therefore square root of 100 = 10.
Therefore Standard error = 3/10 = 0.3
Therefore ME = 0.3 * tc
The Upper Limit : 0.3 * tc = 15.095
The Lower Limit : 0.3 * tc = 13.905
Subtracting the 2 equations, we get 0.3 * tc - ( 0.3 * tc) = 15.095 - 13.905
Therefore 2 * 0.3 * tc = 1.19
tc = 1.9833
The probability at 1.9833 degrees of freedom = 99 is 0.025 (from t tables for 1 tail)
Therefore for 2 tails = 2 * 0.025 = 0.05
Therefore the confidence level being used is 100 - 5 = 95%
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