20. Hiring In preparing a report on the economy, we need to esti- mate the percentage of businesses that plan to hire additional employees in the next 60 days. a) How many randomly selected employers must we contact in order to create an estimate in which we are 98% confident with a margin of error of 5%? b) Suppose we want to reduce the margin of error to 3%. What sample size will suffice? c) Why might it not be worth the effort to try to get an interval with a margin of error of only 1%?

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Author:Amos Gilat
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20. Hiring In preparing a report on the economy, we need to esti-
mate the percentage of businesses that plan to hire additional
employees in the next 60 days.
a) How many randomly selected employers must we contact in
order to create an estimate in which we are 98% confident
with a margin of error of 5%?
b) Suppose we want to reduce the margin of error to 3%. What
sample size will suffice?
c) Why might it not be worth the effort to try to get an interval
with a margin of error of only 1%?
Transcribed Image Text:20. Hiring In preparing a report on the economy, we need to esti- mate the percentage of businesses that plan to hire additional employees in the next 60 days. a) How many randomly selected employers must we contact in order to create an estimate in which we are 98% confident with a margin of error of 5%? b) Suppose we want to reduce the margin of error to 3%. What sample size will suffice? c) Why might it not be worth the effort to try to get an interval with a margin of error of only 1%?
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