SOLUTION: A researcher wishes to estimate the proportion of adults who have​ high-speed Internet access. What size sample should be obtained if she wishes the estimate to be within 0.03 wi

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Question 1194768: A researcher wishes to estimate the proportion of adults who have​ high-speed Internet access. What size sample should be obtained if she wishes the estimate to be within 0.03 with ​90% confidence if
​(a) she uses a previous estimate of ​0.32?
​(b) she does not use any prior​ estimates?

Answer by math_tutor2020(3817) About Me  (Show Source):
You can put this solution on YOUR website!

Part (a)

Use this table
https://www.sjsu.edu/faculty/gerstman/StatPrimer/t-table.pdf
to find the z critical value at 90% confidence is approximately z = 1.645

p = 0.32 is the previous estimate of the proportion
E = 0.03 is the error we want (or smaller)

n = sample size
n = p*(1-p)*(z/E)^2
n = 0.32*(1-0.32)*(1.645/0.03)^2
n = 654.256711111111
n = 655

We always round UP to the nearest whole number when doing min sample size problems.
It doesn't matter that 654.256711111111 is closer to 654 than it is to 655

We round up to clear the hurdle needed.
Try n = 654 in the margin of error formula
E = z*sqrt(p*(1-p)/n)
and you'll find that E > 0.03 which isn't what we want.
But if you tried n = 655, then E = 0.03 or E < 0.03 would be the case.

Answer: 655

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Part (b)

This is going to be very similar to part (a).
However, we'll be using p = 0.50 this time.
This is the most conservative estimate or guess to make for p if we don't know what it is.
It's right in the middle of the interval 0+%3C=+p+%3C=+1

The other values of z = 1.645 and E = 0.03 remain the same from before.

n = sample size
n = p*(1-p)*(z/E)^2
n = 0.50*(1-0.50)*(1.645/0.03)^2
n = 751.673611111111
n = 752
Once again, always round up.

Since p = 0.5, this means p(1-p) = 0.5*(1-0.5) = 0.5*0.5 = 0.25
The formula above updates to n = 0.25*(z/E)^2 when using p = 0.5

Answer: 752


Further Reading:
http://www.ltcconline.net/greenl/courses/201/estimation/ciprop.htm
Scroll down to the section with the subheading of "Finding n to Estimate a Proportion".
I have no affiliation to the websites in either link mentioned.