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Questions 1 and 2 are based on the following: To prepare report on the economy, analysts need to estimate the percentage of businesses that plan to hire additional employees in the next 60 days.
1. How many randomly selected employers (minimum number) must we contact in order to guarantee a margin of error of no more than 4% (at 95% confidence)?
A. 600
B. 400
C. 550
D. 1000
Consider the population proportion be p = 0.5, E = 0.04, from standard normal table, z = 1.96 for 95% confidence interval
2. Suppose we want the above margin of error to be based on a 98% confidence level. What sample size (minimum) must we now use?
A. 1000
B. 757
C. 848
D. 543
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