In 1995 Georgia Institute of Technologys Graphics Visualizat

In 1995, Georgia Institute of Technology\'s Graphics Visualization and Usability Center (GITGV&U;) surveyed 13,000 World Wide Web (WWW) users and asked them about their willingness to pay fees for access to Web sites. Of these, 2,938 were definitely not willing to pay such fees (Inc. technology, No. 3, 1995). GITGV&U; wish to estimate the proportion of users who oppose paying a fee. They are undecided between using a 2 % or 3 % sampling error with 95 % confidence. A 2 % sampling error would give a sample size than a 3 % sampling error.

Solution

The relationship between margin of error and sample size is simple: As the sample size increases, the margin of error decreases. This relationship is called an inverse because the two move in opposite directions.

Hence a 2% sampling error would give a larger sample size than 3% sampling error.