Question

2. A construction company is interested to buy an old apartment, renovate and then sell it at a higher price (known as flipping the apartment). To find the proportion of the houses in each area which were flipped fast within the past few years, estimated within 3%, they hire a real estate agent to do a survey. How many samples does the real estate agent need to get from each area to provide his answer with a 93% confidence interval ?

Answer 1

Solution :

Given that,

= 1 - = 0.5

margin of error = E = 0.03

At 93% confidence level

= 1 - 93%

=1 - 0.93 =0.07

/2 = 0.035

Z/2 = 1.812

sample size = n = (Z _{/ 2} / E )² * * (1 - )

= (1.812 / 0.03)² * 0.5 * 0.5

= 912.04

sample size = n = 913