Assume that a sample is used to estimate a population proportion p. Find the margin of error E that corresponds to the given statistics and confidence level. Round the margin of error to four decimal places.

95% confidence; the sample size is 10,000, of which 40% are successes

A) 0.0096
B) 0.0126
C) 0.0072
D) 0.0110

1 answer

To calculate the margin of error (E) for estimating a population proportion at a 95% confidence level, we can use the formula for the margin of error related to proportions:

\[ E = z \cdot \sqrt{\frac{p(1 - p)}{n}} \]

where:

  • \(z\) is the z-score corresponding to the desired confidence level,
  • \(p\) is the sample proportion,
  • \(n\) is the sample size.

Given:

  • Confidence level = 95%
  • Sample size \(n = 10000\)
  • Sample proportion \(p = 0.40\) (since 40% are successes)
  1. Determine the z-score: For a 95% confidence level, the z-score is approximately \(1.96\).

  2. Plug the values into the formula:

\[ E = 1.96 \cdot \sqrt{\frac{0.40(1 - 0.40)}{10000}} \]

Calculating the components inside the square root:

\[ 1 - p = 1 - 0.40 = 0.60 \]

\[ p(1 - p) = 0.40 \cdot 0.60 = 0.24 \]

\[ \frac{p(1 - p)}{n} = \frac{0.24}{10000} = 0.000024 \]

Now taking the square root:

\[ \sqrt{0.000024} \approx 0.004899 \]

  1. Calculate the margin of error:

\[ E = 1.96 \cdot 0.004899 \approx 0.0096 \]

Finally, rounding to four decimal places:

\[ E \approx 0.0096 \]

Thus, the margin of error is 0.0096.

So the correct answer is A) 0.0096.