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Many states are carefully considering steps that would help them collect sales t

ID: 3182742 • Letter: M

Question

Many states are carefully considering steps that would help them collect sales taxes on items purchased through the Internet. How many randomly selected sales transactions must be surveyed to determine the percentage that transpired over the Internet? Assume that we want to be 90%

confident that the sample percentage is within two percentage points of the true population percentage for all sales transactions.

nequals=

(Round up to the nearest integer.)

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0%

SCORE: 0 REMAINING: 10/10

0%

SCORE: 0 REMAINING: 10/10

Explanation / Answer

here as we do not know estimated proportion p=0.5

margin of error E =0.02

and for 90% CI, z=1.6449

hence sample size n=p(1-p)*(Z/E)2 =~1691 (rounding it up)

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