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A random sample of medical files is used to estimate the proportion \(p\) of all people who have blood type \(B\). (a) If you have no preliminary estimate for \(p\), how many medical files should you include in a random sample in order to be \(85 \%\) sure that the point estimate \(\hat{p}\) will be within a distance of \(0.05\) from \(p ?\) (b) Answer part (a) if you use the preliminary estimate that about 8 out of 90 people have blood type B. (Reference: Manual of Laboratory and Diagnostic Tests, F. Fischbach.)

Short Answer

Expert verified
(a) 208 medical files are needed. (b) 67 medical files are needed with the preliminary estimate.

Step by step solution

01

Understanding the Confidence Interval Formula

The formula for the sample size when no preliminary estimate of \(p\) is available is derived from the confidence interval for a proportion. It is given by: \[ n = \left(\frac{Z^2 \cdot 0.25}{E^2}\right) \] where \(Z\) is the Z-score corresponding to the desired confidence level, and \(E\) is the margin of error (0.05 in this case).
02

Find the Z-score for 85% Confidence

For an 85% confidence interval, the Z-score \(Z\) corresponds to the area in a standard normal distribution such that 7.5% of the distribution is in each tail. From standard Z-tables, this Z-score is approximately 1.44.
03

Calculate Sample Size without Preliminary Estimate

Insert \(Z = 1.44\) and \(E = 0.05\) into the sample size formula: \[ n = \left(\frac{1.44^2 \cdot 0.25}{0.05^2}\right) = \left(\frac{2.0736 \cdot 0.25}{0.0025}\right) \] \[ n = \frac{0.5184}{0.0025} = 207.36 \] Since the sample size must be a whole number, round up to 208.
04

Use Preliminary Estimate for Part (b)

For part (b), the preliminary estimate of \(\hat{p}\) is 8 out of 90 people, or \(\hat{p} = \frac{8}{90} = 0.0889\).
05

Calculate Sample Size with Preliminary Estimate

Using the adjusted sample size formula with \(\hat{p}\): \[ n = \left(\frac{Z^2 \cdot \hat{p} \cdot (1 - \hat{p})}{E^2}\right) \] Substitute \(Z = 1.44\), \(\hat{p} = 0.0889\), and \(E = 0.05\): \[ n = \left(\frac{1.44^2 \cdot 0.0889 \cdot (1 - 0.0889)}{0.05^2}\right) \] \[ n = \left(\frac{2.0736 \cdot 0.0889 \cdot 0.9111}{0.0025}\right) \] \[ n = \frac{0.1673}{0.0025} = 66.92 \] Round up to 67.

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Key Concepts

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

Sample Size Calculation
When we want to estimate a proportion, like how many people have blood type B, it's crucial to calculate the right sample size. The sample size affects how confident we can be about our estimate.
In the absence of a preliminary estimate of the population proportion \( p \), a common approach is to use the maximum variability assumption. This assumes \( p = 0.5 \) because 0.5 reflects the greatest uncertainty (and variability) in a binary outcome. This way, the estimated sample size is less prone to underestimation.
For our problem, the calculation formula is:
  • \[ n = \left(\frac{Z^2 \cdot 0.25}{E^2}\right) \]
  • \( n \) is the sample size we want to find.
  • \( Z \) is the Z-score linked to the confidence level (1.44 for 85%).
  • \( E \) is the margin of error, being 0.05 in our example.
This formula considers the maximum potential error (0.25 derived from \( 0.5 \) times \( 0.5 \)) for scenarios without prior proportion estimates.
Proportion Estimation
Proportion estimation is a statistical technique used to infer information about a population from a sample. Imagine we want to estimate how many people in a city have a certain blood type. We can't test everyone, so we use a representative sample.
In our exercise, when you have a preliminary estimate, such as finding 8 blood type B individuals out of 90, it helps refine further calculations. To make use of a proportion estimate, use the formula:
  • \[ \hat{p} = \frac{8}{90} = 0.0889 \]
This \( \hat{p} \) serves as a starting point to narrow down variability, which impacts the required sample size. When you base calculations on this preliminary estimate,
  • the new formula becomes: \[ n = \left(\frac{Z^2 \cdot \hat{p} \cdot (1 - \hat{p})}{E^2}\right) \]
By substituting our \( \hat{p} \) value, the sample size needed significantly reduces because it reflects the population more accurately.
Z-score for Confidence Level
The Z-score is essential in estimating how confident we can be about our results. It indicates how many standard deviations an element is from the mean. In the realm of confidence intervals, a higher Z-score means more confidence.
For example, an 85% confidence level implies that we're 85% sure our estimate falls within a specified range. To determine the right Z-score for this level, it's essential to find the values corresponding to the tails of the standard normal distribution. For an 85% confidence level:
  • The central part holds 85%, leaving 7.5% in each tail.
  • Using a Z-table, a 7.5% tail equates to a Z-score of approximately 1.44.
Thus, for our calculations, \( Z = 1.44 \), helping us ensure our results are within bounds of reliability. Understanding how the Z-score supports confidence is important for correctly interpreting the level of certainty in statistical outcomes.

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Most popular questions from this chapter

When \(\sigma\) is unknown and the sample is of size \(n \geq 30\), there are two methods for computing confidence intervals for \(\mu\). Method 1: Use the Student's \(t\) distribution with \(d . f .=n-1 .\) This is the method used in the text. It is widely employed in statistical studies. Also, most statistical software packages use this method. Method 2: When \(n \geq 30\), use the sample standard deviation \(s\) as an estimate for \(\sigma\), and then use the standard normal distribution. This method is based on the fact that for large samples, \(s\) is a fairly good approximation for \(\sigma .\) Also, for large \(n\), the critical values for the Student's \(t\) distribution approach those of the standard normal distribution. Consider a random sample of size \(n=31\), with sample mean \(\bar{x}=45.2\) and sample standard deviation \(s=5.3\). (a) Compute \(90 \%, 95 \%\), and \(99 \%\) confidence intervals for \(\mu\) using Method 1 with a Student's \(t\) distribution. Round endpoints to two digits after the decimal. (b) Compute \(90 \%, 95 \%\), and \(99 \%\) confidence intervals for \(\mu\) using Method 2 with the standard normal distribution. Use \(s\) as an estimate for \(\sigma\). Round endpoints to two digits after the decimal. (c) Compare intervals for the two methods. Would you say that confidence intervals using a Student's \(t\) distribution are more conservative in the sense that they tend to be longer than intervals based on the standard normal distribution? (d) Repeat parts (a) through (c) for a sample of size \(n=81\). With increased sample size, do the two methods give respective confidence intervals that are more similar?

Do you want to own your own candy store? Wow! With some interest in running your own business and a decent credit rating, you can probably get a bank loan on startup costs for franchises such as Candy Express, The Fudge Company, Karmel Corn, and Rocky Mountain Chocolate Factory. Startup costs (in thousands of dollars) for a random sample of candy stores are given below (Source: Entrepreneur Magazine, Vol. 23, No. 10\()\). \(\begin{array}{lllllllll}95 & 173 & 129 & 95 & 75 & 94 & 116 & 100 & 85\end{array}\) Use a calculator with mean and sample standard deviation keys to verify that \(\bar{x} \approx 106.9\) thousand dollars and \(s \approx 29.4\) thousand dollars. Find a \(90 \%\) confidence interval for the population average startup costs \(\mu\) for candy store franchises.

(a) Suppose a \(95 \%\) confidence interval for the difference of means contains both positive and negative numbers. Will a \(99 \%\) confidence interval based on the same data necessarily contain both positive and negative numbers? Explain. What about a \(90 \%\) confidence interval? Explain. (b) Suppose a \(95 \%\) confidence interval for the difference of proportions contains all positive numbers. Will a \(99 \%\) confidence interval based on the same data necessarily contain all positive numbers as well? Explain. What about a \(90 \%\) confidence interval? Explain.

Jobs and productivity! How do banks rate? One way to answer this question is to examine annual profits per employee. Forbes Top Companies, edited by J. T. Davis (John Wiley \& Sons), gave the following data about annual profits per employee (in units of one thousand dollars per employee) for representative companies in financial services. Companies such as Wells Fargo, First Bank System, and Key Banks were included. Assume \(\sigma \approx 10.2\) thousand dollars. $$ \begin{array}{llllllllll} 42.9 & 43.8 & 48.2 & 60.6 & 54.9 & 55.1 & 52.9 & 54.9 & 42.5 & 33.0 & 33.6 \\ 36.9 & 27.0 & 47.1 & 33.8 & 28.1 & 28.5 & 29.1 & 36.5 & 36.1 & 26.9 & 27.8 \\ 28.8 & 29.3 & 31.5 & 31.7 & 31.1 & 38.0 & 32.0 & 31.7 & 32.9 & 23.1 & 54.9 \\ 43.8 & 36.9 & 31.9 & 25.5 & 23.2 & 29.8 & 22.3 & 26.5 & 26.7 & & \end{array} $$ (a) Use a calculator or appropriate computer software to verify that, for the preceding data, \(\bar{x} \approx 36.0\). (b) Let us say that the preceding data are representative of the entire sector of (successful) financial services corporations. Find a \(75 \%\) confidence interval for \(\mu\), the average annual profit per employee for all successful banks. (c)Let us say that you are the manager of a local bank with a large number of employees. Suppose the annual profits per employee are less than 30 thousand dollars per employee. Do you think this might be somewhat low compared with other successful financial institutions? Explain by referring to the confidence interval you computed in part (b). (d) Suppose the annual profits are more than 40 thousand dollars per employee. As manager of the bank, would you feel somewhat better? Explain by referring to the confidence interval you computed in part (b). (e) Repeat parts (b), (c), and (d) for a \(90 \%\) confidence level.

How hot is the air in the top (crown) of a hot air balloon? Information from Ballooning: The Complete Guide to Riding the Winds, by Wirth and Young (Random House), claims that the air in the crown should be an average of \(100^{\circ} \mathrm{C}\) for a balloon to be in a state of equilibrium. However, the temperature does not need to be exactly \(100^{\circ} \mathrm{C}\). What is a reasonable and safe range of temperatures? This range may vary with the size and (decorative) shape of the balloon. All balloons have a temperature gauge in the crown. Suppose that 56 readings (for a balloon in equilibrium) gave a mean temperature of \(\bar{x}=97^{\circ} \mathrm{C}\). For this balloon, \(\sigma \approx 17^{\circ} \mathrm{C}\). (a) Compute a \(95 \%\) confidence interval for the average temperature at which this balloon will be in a steady-state equilibrium. (b) If the average temperature in the crown of the balloon goes above the high end of your confidence interval, do you expect that the balloon will go up or down? Explain.

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