In a sample with a number n of people surveyed with a probability of a success of , and a confidence level of , we have the following confidence interval of proportions.
In which
z is the zscore that has a pvalue of .
For this problem, we have that:
The margin of error is:
95% confidence level
So , z is the value of Z that has a pvalue of , so .
Based upon a 95% confidence interval with a desired margin of error of .04, determine a sample size for restaurants that earn less than $50,000 last year.