394 CHAPTER 6 Inferential Statistics
We can similarly determine sample sizes needed to a given bound on
the margin of error in the case of confidence intervals for proportions,
as follows. In this case the margin of error for a confidence interval
with confidence (1−α)×100% is zα/ 2
Ã
pˆ(1−pˆ)
n
, where, as usual, ˆp
is the sampled population proportion. A very useful approximation is
obtained by noting that since 0 ≤ pˆ ≤ 1, then 0 ≤ pˆ(1−pˆ) ≤^14.
Therefore, if we wish for the margin of error to be less than a given
boundB, all we need is a sample size of at least
n≥
Çz
α/ 2
2 B
å 2
,
because regardless of the sampled value ˆpwe see that
zα/ 2
2 B
≥
zα/ 2
»
pˆ(1−pˆ)
B
Exercises
- Assume that we need to estimate the mean diameter of a very
critical bolt being manufactured at a given plant. Previous studies
show that the machining process results in a standard deviation
of approximately 0.012 mm. Estimate the sample size necessary
to compute a 99% confidence interval for the mean bolt diameter
with a margin of error of no more than 0.003 mm. - Assume that a polling agency wishes to survey the voting public to
estimate the percentage of voters which prefer candidate A. What
they seek is a sampling error of no more than .02% at a confidence
level of 98%. Find a minimum sample size which will guarantee
this level of confidence and precision.
6.5 Hypothesis Testing of Means and Proportions
Suppose we encounter the claim by a manufacturer that the precision
bolts of Exercise 1 above have a mean of 8.1 mm and that we are