The federal government in a certain country would like to es

The federal government in a certain country would like to estimate the proportion of households in the country\'s population that own their homes. A pilot sample of 40 households found that 18 of them owned their homes. Determine the additional number of households that need to be sampled to construct a 95% interval with a margin of error equal to 4% to estimate the porportion.

Solution

Compute Sample Size ( n ) = n=(Z/E)^2*p*(1-p)
Z a/2 at 0.05 is = 1.96
Samle Proportion = 0.45
ME = 0.04
n = ( 1.96 / 0.04 )^2 * 0.45*0.55
= 594.248 ~ 595