An insurance company is interested in conducting a study to estimate the population proportion of teenagers who obtain a driving permit within 1 year of their 16^th birthday. A level of confidence of 99% will be used and an error of no more than.04 is desired. There is no knowledge as to what the population proportion will be. The size of sample should be at least ___. A) 1036 B) 160 C) 41 D) 259 E) 289

Question

Quizplus · Accepted Answer

To find the sample size, use the formula for sample size estimation for proportions: n = (Z^2 * p * (1-p)) / E^2. With no prior estimate for p, use p = 0.5 for maximum variability. For 99% confidence, Z is approximately 2.576. The margin of error E is 0.04. Plugging these values into the formula gives n ≈ 1036.

An Insurance Company Is Interested in Conducting a Study to Estimate