A university dean is interested in determining the proportio

A university dean is interested in determining the proportion of students who receive some sort of financial aid. Rather than examine the records for all students, the dean randomly selects 200 students and finds that 118 of them are receiving financial aid. Use a 95% confidence interval to estimate the true proportion of students on financial aid.

Solution

ANSWER: n=118 students CHOOSING THE SAMPLE SIZE, POPULATION PROPORTION n = p * (1 - p) [2.57583 / B]^2 p = POPULATION PROPORTION [0.5] (50% - assumption) B = SPECIFIED BOUND ON THE ERROR [0.03] (3%) n = (0.5) * (1 - 0.5) [2.57583 / (0.03)]^2 = 600 the margin of error is +/- 7%.