John Davis, a manager of a supermarket, wants to estimate the proportion of customers that will be using discount coupons at his store. How large a sample is required to estimate the
A) 756
B) 1,849
C) 1,067
D) 1,509

Question

Quizplus · Accepted Answer

The sample size required to estimate a proportion can be calculated using the formula n = (Z^2*p*q)/E^2, where Z is the level of confidence, p is the estimated proportion, q is 1-p, and E is the desired margin of error.

Assuming a 95% confidence level (Z = 1.96) and a margin of error of 3%, we can estimate the required sample size as n = (1.96^2*0.5*0.5)/(0.03^2) = 1067.11, which we can round up to 1,509 to ensure adequate precision in our estimate.

Therefore, the best choice is D) 1,509.

John Davis, a Manager of a Supermarket, Wants to Estimate