The Statistical Abstract of the United States reported the percentage of people age 18 years of age and older who smoke. Suppose that a study designed to collect new data on smokers and nonsmokers uses a preliminary estimate of the proportion who smoke of 0.12. How large a sample should be taken to estimate the actual proportion of smokers with a margin of error of 0.02

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Answer:

A sample of 1015 should be taken.

Step-by-step explanation:

In a sample with a number n of people surveyed with a probability of a success of [tex]\pi[/tex], and a confidence level of [tex]1-\alpha[/tex], we have the following confidence interval of proportions.

[tex]\pi \pm z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

In which

z is the zscore that has a pvalue of [tex]1 - \frac{\alpha}{2}[/tex].

The margin of error is of:

[tex]M = z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

Suppose that a study designed to collect new data on smokers and nonsmokers uses a preliminary estimate of the proportion who smoke of 0.12.

This means that [tex]\pi = 0.12[/tex]

95% confidence level

So [tex]\alpha = 0.05[/tex], z is the value of Z that has a pvalue of [tex]1 - \frac{0.05}{2} = 0.975[/tex], so [tex]Z = 1.96[/tex]. I used 95% because the confidence level was not given.

How large a sample should be taken to estimate the actual proportion of smokers with a margin of error of 0.02?

This is n for which M = 0.02. So

[tex]M = z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

[tex]0.02 = 1.96\sqrt{\frac{0.12*0.88}{n}}[/tex]

[tex]0.02\sqrt{n} = 1.96\sqrt{0.12*0.88}[/tex]

[tex]\sqrt{n} = \frac{1.96\sqrt{0.12*0.88}}{0.02}[/tex]

[tex](\sqrt{n})^2 = (\frac{1.96\sqrt{0.12*0.88}}{0.02})^2[/tex]

[tex]n = 1014.2[/tex]

Rounding up:

A sample of 1015 should be taken.