SOLUTION: A local men's clothing store is being sold. The buyers are trying to estimate the proportion of items that are outdated. They will choose a random sample from the 100,000 items in

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Question 1197639: A local men's clothing store is being sold. The buyers are trying to estimate the proportion of items that are outdated. They will choose a random sample from the 100,000 items in the store's inventory in order to determine the proportion of merchandise that is outdated. The current owners have never determined the percentage of outdated merchandise and cannot help the buyers. How large a sample do the buyers need in order to be 99% confident that the margin of error of their estimate is about 0.02?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!

Hi  
Generally when p is unknown, p = .5 is used
99% confident, z = 2.576
ME = .02
n = %28z%2FME%29%5E2+%28p%281-p%29%29%29 = %282.576%2F.02%29%5E2+%28.25%29%29%29 = 4147.36
Always round Up:  n = 4148 Sample size

 = CI	z = value
90%	z =1.645
92%	z = 1.751
95%	z = 1.96
98%	z = 2.326
99%	z = 2.576

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