A car rental agency charges Shaes Family $25.00 plus .10 per mile that the car has driven. Shae spends $45.00 on the rental car.
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The sample size which will produce sample proportion of 0.3 and 95% confidence interval is 36.
Given sample proportion of 0.3, confidence level 95%.
A confidence interval of proportions is given by:
π±zπ(1-π)/n
In which :
π is the sample proportion,
z is the critical value
n is the sample size.
Margin of error=zπ(1-π)/n
z value for confidence level of 95% is 1.96
Margin of error=1.96
The widest interval has the highest margin of error, since the margin of error and since the margin of error is inversely proportional to the sample size , a lower sample size generates a higher margin of error.
Hence sample size which is correct is 36.
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Question is incomplete as it also includes options like:
a)46
b)68
c)56
d)36.