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Determining Sample Size. In Exercises 31–38, use the given data to find the minimum sample size required to estimate a population proportion or percentage.

Video games An investor is considering funding of new video game. She wants to know the worldwide percentage of people who play video games, so a survey is being planned. How many people must be surveyed in order to be 90% confident that the estimated percentage is within three percentage points of the true population percentage?

a.Assume that nothing is known about the worldwide percentage of people who play video games.

b.Assume that about 16% of people play video games (based on a report by Spil games).

c.Given that the required sample size is relatively small, could you simply survey the people that you know?

Short Answer

Expert verified

a.Assuming that nothing is known about the proportion of people who play video games, the sample size required is equal to 752.

b.Assuming that about 16% of people play video games, the sample size required is equal to 404.

c. To accurately estimate the proportion of people who play video games, a convenience sample consisting of people you know should not be taken as it is not randomly selected and does not represent the entire population.

Step by step solution

01

Given information

The percentage of people who play video games is to be estimated.

The sample size needs to be determined.

The following values are known:

The margin of error is equal to 0.03.

The confidence level is equal to 90%.

02

Finding the sample size when the sample proportion is not known

a.

Let \(\hat p\) denote the sample proportion of people who play video games.

Let \(\hat q\) denote the sample proportion of people who do not play video games.

Here, nothing is known about the sample proportions.

The formula for finding the sample size is as follows:

\(n = \frac{{{{\left( {{z_{{\alpha \mathord{\left/

{\vphantom {\alpha 2}} \right.

\kern-\nulldelimiterspace} 2}}}} \right)}^2}0.25}}{{{E^2}}}\)

The confidence level is equal to 90%. Thus, the level of significance is equal to 0.10.

The value of \({z_{\frac{\alpha }{2}}}\) for \(\alpha = 0.10\) from the standard normal table is equal to 1.645.

Substituting the required values, the following value of the sample size is obtained:

\(\begin{array}{c}n = \frac{{{{\left( {1.645} \right)}^2} \times 0.25}}{{{{\left( {0.03} \right)}^2}}}\\ = 751.67\\ \approx 752\end{array}\)

Hence, the required sample size is equal to 752.

03

Finding the sample size when the sample proportion is known

b.

The value of \(\hat p\) is given to be equal to:

\(\begin{array}{c}\hat p = 16\% \\ = \frac{{16}}{{100}}\\ = 0.16\end{array}\)

Thus, the value of is computed below:

\(\begin{array}{c}\hat q = 1 - \hat p\\ = 1 - 0.16\\ = 0.84\end{array}\)

The formula for finding the sample size is as follows:

\(n = \frac{{{{\left( {{z_{{\alpha \mathord{\left/

{\vphantom {\alpha 2}} \right.

\kern-\nulldelimiterspace} 2}}}} \right)}^2}\hat p\hat q}}{{{E^2}}}\)

Substituting the required values, the following value of the sample size is obtained:

\(\begin{array}{c}n = \frac{{{{\left( {1.645} \right)}^2} \times 0.16 \times 0.84}}{{{{\left( {0.03} \right)}^2}}}\\ = 404.10\\ \approx 404\end{array}\)

Hence, the required sample size is equal to 404.

04

Convenience sampling vs Random sampling

c.

A sample consisting of people that are easily approachable or the people that you know is a convenience sample and is not a simple random sample.

For estimating the population proportion of people who play video games, a simple random sample that represents the entire population needs to be considered.

Thus, a convenience sample consisting of people you know should not be taken to reach accurate conclusions.

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