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We are studying the proportion of cities that have private garbage collector. We want a maximum error of 0.10 and a 95% confidence level, and tentatively estimate the proportion at 0.50. What is the minimum number of cities we need to contact?

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Answer:

The minimum number of cities we need to contact is 96.

Explanation:

In a sample with a number n of people surveyed with a probability of a success of
\pi, and a confidence interval
1-\alpha, we have the following confidence interval of proportions.


\pi \pm z\sqrt{(\pi(1-\pi))/(n)}

In which

Z is the zscore that has a pvalue of
1 - (\alpha)/(2).

The margin of error is:


M = z\sqrt{(\pi(1-\pi))/(n)}

95% confidence interval

So
\alpha = 0.05, z is the value of Z that has a pvalue of
1 - (0.05)/(2) = 0.975, so
Z = 1.96.

In this problem, we have that:


p = 0.5, M = 0.1


M = z\sqrt{(\pi(1-\pi))/(n)}


0.1 = 1.96*\sqrt{(0.5*0.5)/(n)}


0.1√(n) = 0.98


√(n) = 9.8


(√(n))^(2) = (9.8)^(2)


n = 96

The minimum number of cities we need to contact is 96.

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