# SOLUTION: A car insurance company would like to estimate the proportion of accident claims covered by the company. According to the preliminary estimate,89% of the claims are covered. How la

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 Question 324568: A car insurance company would like to estimate the proportion of accident claims covered by the company. According to the preliminary estimate,89% of the claims are covered. How large of a sample should be taken to estimate the proportion covered by the company if we want to be 95% confident that the sample percentage is within 3% of the actual percentage of the accident covered by the companyAnswer by stanbon(57246)   (Show Source): You can put this solution on YOUR website! A car insurance company would like to estimate the proportion of accident claims covered by the company. According to the preliminary estimate,89% of the claims are covered. How large of a sample should be taken to estimate the proportion covered by the company if we want to be 95% confident that the sample percentage is within 3% of the actual percentage of the accident covered by the company ------------------------------- Since E = z*sqrt(pq/n) sqrt(n) = [z/E]sqrt(pq) --- n = [z/E]^2*(pq) ---- Your Problem: n = [1.96/0.03]^2*(0.89*0.11) --- n = [4268]*(0.0979) ---- n = 418 when rounded up ============================ Cheers, Stan H.