Jolly Blue Giant Health Insurance (JBGHI) is concerned about rising lab test costs and would like to know what proportion of the positive lab tests for prostate cancer are actually proven correct through subsequent biopsy. JBGHI demands a sample large enough to ensure an error of ± 2 percent with 90 percent confidence. What is the necessary sample size?
A)4,148
B)2,401
C)1,692
D)1,604

Question

Quizplus · Accepted Answer

To determine the necessary sample size for a proportion with a specified margin of error and confidence level, the formula n = (Z^2 * p * (1-p)) / E^2 is used. For 90% confidence, Z is approximately 1.645. Assuming p = 0.5 for maximum variability, and E = 0.02, the calculation gives approximately 1,692.

Jolly Blue Giant Health Insurance (JBGHI) Is Concerned About Rising