A researcher wishes to estimate the percentage of adults who support abolishing the penny. What size sample should be obtained if he wishes the estimate to be within 4 percentage points with 90% confidence if (a) he uses a previous estimate of 38%

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The answer is 709

Z for 90% confidence interval = Z0.05 = 1.645

a) p = 0.38

Margin of error = Z0.05 [tex]\times[/tex][tex]\sqrt{(p\times (1 - p) / n)}[/tex]

or, 0.03 = 1.645 [tex]\times[/tex][tex]\sqrt{(0.38 \times0.62 / n)}[/tex]

or, n = 708.4

or, n = 709

What is Margin of error ?

  • A margin of error is a statistical metric that accounts for the gap between actual and anticipated survey findings in a random sample. In layman's words, the margin of error measures the degree of unpredictability in data and study results.
  • A margin of error indicates how many percentage points your results will deviate from the true population figure.
  • A 95% confidence interval with a 4% margin of error, for example, suggests that your statistic will be within 4 percentage points of the true population figure 95% of the time.

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