The brand manager for a brand of toothpaste must plan a campaign designed to increase brand recognition. He wants to first determine the percentage of adults who have heard of the brand. How many adults must he survey in order to be % confident that his estimate is within percentage points of the true population percentage

Respuesta :

Using the margin of error, it is found that he must survey 601 adults in order to be 95% confidence that his estimate is within 4 percentage points of the true population percentage.

In a sample with a number n of people surveyed with a probability of a success of [tex]\pi[/tex], and a confidence level of [tex]\alpha[/tex], we have the following confidence interval of proportions.

[tex]\pi \pm z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

In which

z is the z-score that has a p-value of [tex]\frac{1+\alpha}{2}[/tex].

The margin of error is:

[tex]M = z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

95% confident, hence:

[tex]\alpha = 0.95[/tex], z is the value of Z that has a p-value of [tex]\frac{1+0.95}{2} = 0.975[/tex], so [tex]z = 1.96[/tex].

We have no estimate, hence, [tex]\pi = 0.5[/tex] is used.

Within 4%, hence, it is needed to find n for which M = 0.04.

[tex]M = z\sqrt{\frac{\pi(1-\pi)}{n}}[/tex]

[tex]0.04 = 1.96\sqrt{\frac{0.5(0.5)}{n}}[/tex]

[tex]0.04\sqrt{n} = 1.96(0.5)[/tex]

[tex]\sqrt{n} = \frac{1.96(0.5)}{0.04}[/tex]

[tex](\sqrt{n})^2 = \left(\frac{1.96(0.5)}{0.04}\right)^2[/tex]

[tex]n = 600.25[/tex]

Rounding up, 601 adults must be sampled.

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