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Statistics Probability?

A gigantic warehouse stores approx70 million aluminum beer amp; soda cansRecently, a fire broke outA Statistician was hired to estimate p, the true proportion of cans contaminated by the fireHow many cans should be randomly sampled to estimate p to within 0.02 with 90% confidence? Round up to the nearest can.

Answer:

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Hi Erika In order to find the sample size when you are NOT given an estimate of p, you should ALWAYS use p 0.5 because it provides the most conservative calculation for sample sizeUse this equation to solve for sample size margin of error (z)√(pq/n) where z 1.645 from Standard Normal table with 10%/2 0.05 area in each tail Now insert the values from the problem into the equation margin of error (z)√(pq/n) 0.02 (1.645)√[(0.5)(1 - 0.5) / n] Next, solve for n n 1691.27, but ALWAYS round up Answer 1,692 cans Good Luck with your quiz!

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