Sample Size Calculation for Confidence Intervals
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ScribdTranslationsSample Size Calculation for Confidence Intervals
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ScribdTranslationsExample:
In a dataset, the range is estimated to be 36.
a. What is the planned value for the population standard deviation?
b. What size should the sample be for the margin of error in
Is a 95% confidence interval 3?
c. What size should the sample be for the margin of error in
Is a 95% confidence interval 2?
Formula n = Z² σ ²/E²
Data
Range (Vmax - Vmin = given 36 Note: since σ is unknown, we divide the range e
σ σ 9
a. What is the planned value for the population standard deviation?
Response σ 9
b. What size should the sample be so that the margin of error in a confidence interval is
Margin of error E = 3 E²= 9 n= 34.5744 35
CI (confidence interval) 95% σ ²= 81
Z= 1.96 Z squared3.8416
equals
c. What size should the sample be for the margin of error in a confidence interval of
Margin of error E = 2 E²= 4 n= 77.7924 78
CI (confidence interval) 95% σ ²= 81
Z= 1.96 Z squared3.8416
=
between 4 to estimate it
95% sea 3?
95% sea 2?
Example 2:
The average cost of unleaded gasoline in Greater Cincinnati is $2.41.
Enquirer, February 3, 2006). In a time of changes in prices, a newspaper
sample the gas stations and present a report on gasoline prices. Assume
that the standard deviation in the prices of the gallon of unleaded gasoline is $0.15; give the
sample size n that this newspaper should use to have 95% confidence with each
one of the following margins of error.
a margin of error of $0.07
b. A margin of error of $0.05
c. A margin of error of $0.03
Solution σ 0.15
a margin of error of $0.07
Margin of error E = 0.07 E²= n= #DIV/0!
CI (confidence interval) 95% σ ²=
Z= 1.96 Z²=
n = Z²σ²/E²
Example 3:
The initial annual salaries of students who have just completed a degree in management are
expect them to be between $30,000 and $45,000. Suppose you want to provide a 95% confidence interval.
to estimate the population mean of the starting salaries. What is the planned value of the deviation?
population standard? How large must the sample be if you want the margin of error to be:
$500?
$200?
$100?
Would you recommend trying to have $100 as a margin of error?
Determination of sample size
Population Proportion:
Example 1
In a simple random sample of 400 individuals, 100 of the responses
They were Yes.
a. Give the point estimate of the population proportion of individuals whose
the answer will be Yes.
b. Provide the estimation of the standard error of the proportion.
c. Calculate the 95% confidence interval for the population proportion.
E = [(0.
.25*(1.025))/400]^2
Determination of sample size
Population Proportion:
Example 1
A study was conducted with 611 office workers to investigate their attention to the phone, the study
I recorded the frequency with which they answered the phone and the frequency with which they left.
that the call goes to voicemail (USA Today, April 21, 2002). Of these office workers,
281 indicated to always check the calls and not to use the voicemail.
a. Give the point estimate of the population proportion of office workers who always
answer the phone.
b. At a 90% confidence level, what is the margin of error?
c. Give the 90% confidence interval for the proportion of the population of office workers that
They always answer the phone.
Determination of sample size
Population Proportion:
Example 1
In 2003, the percentage of people without health insurance (in the United States) was
15.6% (Statistical Abstract of the United States, 2006). A congressional committee is asked.
conduct a study to obtain updated information.
a. What sample size do you recommend to the committee, if the objective is that in the
estimation of the current proportion of individuals who do not have health insurance
error sea 0.03? Use 95% confidence.
b. Repeat part a using 99% confidence.
Solution
a. What sample size do you recommend to the committee, if the objective is to estimate the
current proportion of individuals without health insurance, with a margin of error of 0.03? Use 95% of
trust