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Finding Sample Size Instead of using Table 7-2 for determining the sample size required to estimate a population standard deviation s, the following formula can be used

n=12z2d2

where corresponds to the confidence level and d is the decimal form of the percentage error. For example, to be 95% confident that s is within 15% of the value of s, use z2=1.96 and d = 0.15 to get a sample size of n = 86. Find the sample size required to estimate s, assuming that we want 98% confidence that s is within 15% of .

Short Answer

Expert verified

For 98% confidence level, the required sample size is 121.

Step by step solution

01

Given information

The formula to find sample size is n=12z2d2, where d is the percentage error.

02

Describe the formula to determine the sample size

The sample size n can be determined by using the following formula,

n=12(z2d)2

Where is critical value and d is the percentage difference.

03

Find the critical value  zα2

For the given confidence level 98% corresponds to =0.02and2=0.01.

Mathematically,

Pz<z2=1-2=0.99

In the standard normal table for positive z score, find the value closest to 0.99, which is 0.9901, corresponding row value 2.3 and column values is 0.03; this corresponds to the z-score of 2.33, which is the critical value role="math" localid="1648122456490" z0.01.

Thus, the critical value is z0.01=2.33

04

Find the required sample size

For 15% percentage error, the sample size is calculated using the given formula,

n=12z2d2=122.330.152=120.64=121

Therefore, with 121 sample values we are 98% confident that s is within 15% of .

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