John Davis, a manager of a supermarket, wants to estimate the proportion of customers that will be using discount coupons at his store.How large a sample is required to estimate the true proportion to within 3%
With 98% confidence?

Question

Quizplus · Accepted Answer

The sample size required to estimate the true proportion to within 3% with 98% confidence is 1,067. This can be calculated using the formula n = (Z^2 * p * q) / e^2, where Z is the z-score for the desired confidence level, p is the estimated proportion, q is 1 - p, and e is the margin of error. In this case, Z = 2.326, p = 0.5, q = 0.5, and e = 0.03. Plugging these values into the formula gives n = 1,067.

John Davis, a Manager of a Supermarket, Wants to Estimate