Answer to Question #50284 in Economics for Robert

Question

After calculating the sample size needed to estimate a population proportion to within 0.05, you have been told that the maximum allowable error (E) must be reduced to just 0.025. If the original calculation led to a sample size of 1000, the sample size will now have to be____.

Answer 1

After calculating the sample size needed to estimate a population proportion to within 0.05, you have been told that the maximum allowable error (E) must be reduced to just 0.025. If the original calculation led to a sample size of 1000, the sample size will now have to be 1000+-(1000*0.025) = 1000+-25.