Assume that you wish to estimate a population proportion, p. For the given margin of error and confidence level, determine the sample size required:

A researcher wants to determine what proportion of adults in one town regularly buy organic food. Obtain a sample size that will ensure a margin of error of at most 0.04 for a 90% confidence interval. In previous years, the proportion has been 0.16 .

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Answer:

The sample size required is 228.

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 z-score that has a p-value of [tex]1 - \frac{\alpha}{2}[/tex].

The margin of error is of:

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

90% confidence level

So [tex]\alpha = 0.1[/tex], z is the value of Z that has a p-value of [tex]1 - \frac{0.1}{2} = 0.95[/tex], so [tex]Z = 1.645[/tex].

In previous years, the proportion has been 0.16.

This means that [tex]\pi = 0.16[/tex]

Obtain a sample size that will ensure a margin of error of at most 0.04 for a 90% confidence interval.

This is n for which M = 0.04. So

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

[tex]0.04 = 1.645\sqrt{\frac{0.16*0.84}{n}}[/tex]

[tex]0.04\sqrt{n} = 1.645\sqrt{0.16*0.84}[/tex]

[tex]\sqrt{n} = \frac{1.645\sqrt{0.16*0.84}}{0.04}[/tex]

[tex](\sqrt{n})^2 = (\frac{1.645\sqrt{0.16*0.84}}{0.04})^2[/tex]

[tex]n = 227.3[/tex]

Rounding up:

The sample size required is 228.