A study is to be conducted of the percentage of homeowners w

A study is to be conducted of the percentage of homeowners who own at least two television sets. At least how large a sample is required if we wish to be 99% confident that the error in estimating this quantity is less than 0.014? Use a z-score rounded to 2 decimal places.

n=

Solution

Given ?=0.01, Z(0.005)=2.58 (check normal table)
E=0.001

n=(Z/E)^2*p*(1-p) = (2.58/0.014)^2*0.5*(1-0.5) = 8490.30