A fictional company conducts sales seminars. At the end of each seminar attendee

Question

A fictional company conducts sales seminars. At the end of each seminar attendees may or may not buy the company's product. Current estimates are that 35% of attendees purchase the product. The company plans to take a random sample of the attendees the sales seminar to estimate the population proportion of success (defined as percentage of the attendees who would purchase the product) with an allowable error of 3% at a 99% confidence level. How large of a random sample should the company select?

Explanation / Answer

To find how large a sample should company select, we should find the sample size by the formula -

n = [ (Zcritical)2 * p * (1 - p) ] / E2

Where,

Zcritical = critical value of Z at 99% confidence level

= 2.58

p = population proportion

= 0.35

E = Margin of Error

= 0.03 (3%)

So, n = [(2.58)2 * 0.35 * (1-0.35)] / (0.03)2

. = 1682.59

so rounding off we get

.   n = 1683

So, the sample size should be 1683.

Please give a thumbs up. Thanks :)

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