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Chapter 11: Confidence Intervals – Large Samples

Note:

When computing the sample size to make an accurate estimate for the

population proportion

, if

̂

is unknown, use a value of 0.5 in the formula

for

̂

. By using

̂

= 0.5, the maximum sample size will be computed.

Example 11-5:

A statistician wishes to estimate, with 95% confidence, the

proportion of adult U.S. citizens who approve of harvesting embryonic stem

cells, assuming no prior study. The statistician wishes to be accurate to within

2.5% of the true proportion. What is the maximum sple size necessary for

the statistician to carry out the analysis?

Solution:

We are given that

= 0.05,

= 1.95996 and

= 2.5% =

0.025. Since we cannot assume any prior study, we will have to let the

estimate for

be

̂

= 0.50 and in this case the maximum sample size will be

computed from the formula. Substituting into the formula, we get

̂ ̂ (

)

= (0.50)(1 – 0.5)(1.95996/0.025)

2

= 1536.57728

1537

That is, in order for the statistician to be 95% confident that the estimate is

within 2.5% of the true proportion of people who approve of harvesting

embryonic stem cells, a sample of

at most

1537 people is needed.

We can also use the

Large Sample Confidence Interval for a Single

Population Proportion

workbook to compute the sample size. The output is

shown in

Figure 11- 8

. Observe that the computed sample size from the

workbook is 1536.6 which rounds up to 1537, the same as when the formula

is used.