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What sample size is needed to give the desired margin of error in estimating a population mean with the indicated level of confidence? A margin of error within ±0.5 with \(90 \%\) confidence, if we make a reasonable estimate that \(\sigma=25\)

Short Answer

Expert verified
The required minimum sample size for a margin of error within ±0.5 with 90% confidence, given that σ=25, is 6727.

Step by step solution

01

Understand Confidence Interval and Required Formula

In statistics, Confidence intervals are used to estimate the range in which our population mean is likely to be found. Based on the requirements of margin of error (E), confidence level and standard deviation (σ), we need to make use of the following formula which gives us the minimum sample size required: \(n = \left( \frac{Z*\sigma}{E} \right)^2 \). Here, Z is the Z-score corresponding to the given level of confidence (90% in this case) and it can be found from the standard Normal Distribution.
02

Find Z-Score

The Z-score corresponding to a given level of confidence can be found from the Z-table or standard Normal Distribution. For a 90% confidence level, Z-score (Z) is 1.645.
03

Substitution and Calculation

Now, we substitute the known values into the formula: \(n = \left( \frac{1.645*25}{0.5} \right)^2 \). This simplifies to: \(n = 82.05^2 = 6726.2025 \). Because we cannot have a fraction of a sample, we will need to round up to the next whole number, providing a minimum sample size requirement.
04

Final Answer

Rounding up, the required minimum sample size (n) is 6727.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Confidence Interval
A confidence interval is a range of values that is used to estimate the true value of a population parameter. It is constructed around a sample statistic to capture the population parameter with a certain level of confidence, often expressed as a percentage like 90%, 95%, or 99%.

The width of this interval is influenced by the sample size, the level of confidence we desire, and the variability within the data, which is encapsulated by the standard deviation. The smaller the margin of error or the higher the confidence level we want, the larger the required sample size will be to ensure that our confidence interval accurately reflects the population mean.
Margin of Error
The margin of error represents the amount of error that one can tolerate in their estimate of a population parameter. It is the radius of the confidence interval and indicates the range above and below the sample statistic where the true population mean is expected to lie.

A smaller margin of error requires a larger sample size because it narrows the confidence interval, demanding more precision in the estimate. In statistical calculations, it is typically denoted by 'E' and directly affects how close the estimated interval is to the actual population value.
Normal Distribution
The normal distribution, often referred to as the bell curve, is a fundamental concept in statistics that describes how the values of a variable are distributed. It is characterized by its symmetrical, bell-shaped curve where most observations cluster around the central peak—the mean—and probabilities for values taper off equally in both directions from the mean.

Many statistical methods, including the calculation of confidence intervals, rely on the assumption that data follow a normal distribution. This assumption allows statisticians to use the properties of the normal distribution to make inferences about population parameters based on sample data.
Z-score
A Z-score is a numerical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean. If a Z-score is 0, it indicates that the data point's score is identical to the mean score.

In the context of confidence intervals, the Z-score is used to determine how many standard deviations an element is from the mean. When we state a 90% confidence level, we refer to the area under the normal distribution curve that captures 90% of the data, and the corresponding Z-score provides the critical value required for calculating the confidence interval.
Standard Deviation
The standard deviation (σ) is a measure of how spread out numbers are in a set of data. It is a way to quantify the amount of variation or dispersion of a set of values. A low standard deviation means that the values tend to be close to the mean of the set, while a high standard deviation indicates that the values are spread out over a wider range.

In sample size determination for confidence intervals, the standard deviation reflects the inherent variability in the population. If the population variability is high, a larger sample will be required to achieve a certain margin of error for a given confidence level.

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Most popular questions from this chapter

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