Question

Questions 4 and 5 refer to the following: Coopers&Lybrand surveyed a sample of 210 chief executives of fast-growing small companies. Only 51% of these executives had a management succession plan in place.

Answer 1

Solution :

Given that,

$\hat p$ = 0.51

1 - $\hat p$ = 0.49

margin of error = E = 0.04

Z_$\alpha$/2 = 1.96

sample size = n = (Z_{$\alpha$ / 2} / E)² * $\hat p$ * (1 - $\hat p$ )

= (1.96 / 0.04)² * 0.51 * 0.49

= 601

sample size = n = 601