CNN wants to estimate the percent of people in the US who support a bill in congress. How large a sample will they need if they want a margin of error less than 2.5% at the 90% confidence level?
Solution :
Given that,
= 0.5
1 - = 1 - 0.5 = 0.5
margin of error = E = 2.5% = 0.025
At 90% confidence level
= 1 - 0.90 = 0.10
/2 =0.05
Z/2 = 1.645 ( Using z table )
Sample size = n = (Z/2 / E)2 * * (1 - )
= (1.645 / 0.025)2 * 0.5 * 0.5
=1082.41
Sample size = 1083
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