What sample size is needed to give a margin of error within ±2.5% in estimating a population proportion with 90% confidence? We estimate that the population proportion is about 0.4
Solution :
Given that,
= 0.4
1 - = 1 - 0.4= 0.6
margin of error = E = 0.025
At 90% confidence level
= 1 - 90%
= 1 - 0.90 =0.10
/2
= 0.05
Z/2
= Z0.05 = 1.645 ( Using z table )
Sample size = n = (Z/2 / E)2 * * (1 - )
= (1.645 / 0.025)2 * 0.4 * 0.6
=1039.1136
Sample size = 1040
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