A programmer plans to develop a new software system. In planning for the operating system that he will use, he needs to estimate the percentage of computers that use a new operating system. How many computers must be surveyed in order to be 95% confident that his estimate is in error by no more than five percentage points?
Solution :
Given that,
= 0.5
1 - = 0.5
margin of error = E = 0.05
At 95% confidence level the z is ,
= 1 - 95% = 1 - 0.95 = 0.05
/ 2 = 0.05 / 2 = 0.025
Z/2 = Z0.025 = 1.96
sample size = n = (Z / 2 / E )2 * * (1 - )
= (1.96 / 0.05)2 * 0.5 * 0.5
= 384.16
sample size = 385
385 computers must be surveyed in order to be 95% confident that his estimate is in error by no more than five percentage points.
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