SOLUTION: Jolly Blu Gaint Health Insurance (JBGAI) is concerned about rising lab test costs and would like to know what roportion of the positive lab test for prostate cancer are actually pr

Question 219164: Jolly Blu Gaint Health Insurance (JBGAI) is concerned about rising lab test costs and would like to know what roportion of the positive lab test for prostate cancer are actually proven correct through subsequent biopsy. JBGAI demands a sample large enough to ensure an err of =+ 25% with 90% confidence. whatis the necessary sample size?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Jolly Blu Gaint Health Insurance (JBGAI) is concerned about rising lab test costs and would like to know what roportion of the positive lab test for prostate cancer are actually proven correct through subsequent biopsy. JBGAI demands a sample large enough to ensure an error of =+ 25% with 90% confidence. what is the necessary sample size?
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invNorm(0.05) = 1.645
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E = z*sqrt(pq/n)
n = [z/E]^2[pq]
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n = [1.645/0.25]^2[0.5*0.5]
n = 10.82
Rounding up:
n = 11
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Cheers,
Stan H.
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