SOLUTION: Insurance companies are becoming concerned that the increased use of cell phones is resulting in more car crashes, and they are considering implementing higher rates for drivers wh
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Question 1177069: Insurance companies are becoming concerned that the increased use of cell phones is resulting in more car crashes, and they are considering implementing higher rates for drivers who use such phones. They want to estimate the proportion of drivers who talk on phone while they are driving to within 3% with 95% confidence. What size of sample should they take? Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! error is half-interval, which is for a proportion z*sqrt(p*(1-p)/n)
so 1.96*sqrt(0.03*0.97/n)=0.03
square both sides
3.8416*0.0291/n=0.0009
n=124.21 or 125
