A car insurance company would like to determine the proportion of accident claims covered by the company. According to a preliminary estimate, 60 percent of the claims are covered. How large a sample should be taken to estimate the proportion of accident claims covered by the company if we want to be 98 percent confident that the sample percentage is within ±3 percent of the actual percentage of the accidents covered by the insurance company?

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n = (.6)(.4)(2.326/.03)² = .24(77.5)² = 1442.7

A Car Insurance Company Would Like to Determine the Proportion