In spite of the potential safety hazards, some people would like to have an Internet connection in their car. A preliminary survey of adult Americans has estimated this proportion to be somewhere around 0.40. Use the given preliminary estimate to determine the sample size required to estimate this proportion with 95% confidence and a margin of error of 0.02. (Round your answer up to the nearest integer.)

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Answer:

The sample size required is of 2305.

Step-by-step explanation:

In a sample with a number n of people surveyed with a probability of a success of [tex]\pi[/tex], and a confidence level of [tex]1-\alpha[/tex], we have the following confidence interval of proportions.

[tex]\pi \pm z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

In which

z is the zscore that has a pvalue of [tex]1 - \frac{\alpha}{2}[/tex].

The margin of error is:

[tex]M = z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

A preliminary survey of adult Americans has estimated this proportion to be somewhere around 0.40.

This means that [tex]\pi = 0.4[/tex]

95% confidence level

So [tex]\alpha = 0.05[/tex], z is the value of Z that has a pvalue of [tex]1 - \frac{0.05}{2} = 0.975[/tex], so [tex]Z = 1.96[/tex].

The sample size required to estimate this proportion with 95% confidence and a margin of error of 0.02.

The sample size required is of n.

n is found when M = 0.02. So

[tex]M = z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

[tex]0.02 = 1.96\sqrt{0.4*0.6}{n}}[/tex]

[tex]0.02\sqrt{n} = 1.96\sqrt{0.4*0.6}[/tex]

[tex]\sqrt{n} = \frac{1.96\sqrt{0.4*0.6}}{0.02}[/tex]

[tex](\sqrt{n})^2 = (\frac{1.96\sqrt{0.4*0.6}}{0.02})^2[/tex]

[tex]n = 2304.96[/tex]

Rounding up

The sample size required is of 2305.