The Census Bureau is planning to take a sample equivalent to 1/10 of 1% of the p

Question

The Census Bureau is planning to take a sample equivalent to 1/10 of 1% of the population in each state in order to estimate the percentage of the population in that state earning over $100,000 a year. Other things being equal, evaluate the expected accuracy of the sample:
A. the accuracy to be expected in California is quite a bit higher than in Montana
B. the accuracy to be expected in California population 40 million is about the about the same as the accuracy to be expected in Montana population 3 million
C. The accuracy to be expected in California is quite a bit lower than in Montana

Explanation / Answer

(option A is correct)

the accuracy to be expected in California is quite a bit higher than in Montana

The accuracy in California will be quite a bit higher due to the the much larger sample size in that state as compared with Montona Statistical accuracy doesn't rely on the percentage of the population (which is the same for each state) but it relies instead on the total number sampled.

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