An insurance company is interested in conducting a study to 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

The sample size should be at least 1036. This is because the formula for the sample size is n = (Z^2 * p * q) / e^2, where Z is the z-score for the desired level of confidence, p is the estimated population proportion, q is 1 - p, and e is the desired margin of error. In this case, Z = 2.576 (for a 99% confidence level), p = 0.5 (since there is no knowledge as to what the population proportion will be), q = 0.5, and e = 0.04. Plugging these values into the formula, we get n = (2.576^2 * 0.5 * 0.5) / 0.04^2 = 1036.

An Insurance Company Is Interested in Conducting a Study to To Estimate