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    The document discusses conducting a telephone survey to estimate the proportion of voters favoring a particular presidential candidate. It provides the minimum required sample size to estimate the proportion within 2% error and 95% confidence as 2,393 voters. Tables are presented showing how the minimum sample size varies with different actual proportions from 40-60% and error bounds from 1-3%. The maximum sample size occurs when the actual proportion is 50% and the error bound is 1%, resulting in a sample size of 9,406. A cost table is also presented showing the fixed and variable costs per sample. The document advises sticking to an error bound of 2% to match competitors rather than trying to reduce it to 1% due to the significant increase in

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    The document discusses conducting a telephone survey to estimate the proportion of voters favoring a particular presidential candidate. It provides the minimum required sample size to estimate the proportion within 2% error and 95% confidence as 2,393 voters. Tables are presented showing how the minimum sample size varies with different actual proportions from 40-60% and error bounds from 1-3%. The maximum sample size occurs when the actual proportion is 50% and the error bound is 1%, resulting in a sample size of 9,406. A cost table is also presented showing the fixed and variable costs per sample. The document advises sticking to an error bound of 2% to match competitors rather than trying to reduce it to 1% due to the significant increase in

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    8 views9 pages

    Business Statistics CASE-8

    Uploaded by

    taran.bhasin
    The document discusses conducting a telephone survey to estimate the proportion of voters favoring a particular presidential candidate. It provides the minimum required sample size to estimate the proportion within 2% error and 95% confidence as 2,393 voters. Tables are presented showing how the minimum sample size varies with different actual proportions from 40-60% and error bounds from 1-3%. The maximum sample size occurs when the actual proportion is 50% and the error bound is 1%, resulting in a sample size of 9,406. A cost table is also presented showing the fixed and variable costs per sample. The document advises sticking to an error bound of 2% to match competitors rather than trying to reduce it to 1% due to the significant increase in

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    Flag for inappropriate content
    of 9

    BUSINESS STATISTICS CASE-8

    CASE-PRESIDENTIAL POLLING
    A Company Wants to Conduct a Telephone Survey of randomly selected voters to estimate the proportion of voters who favor a particular candidate in a presidential election, to within 2 % Error with 95 % Confidence. It is guessed that the proportion is 53 %

    Ques 1What is the required Minimum Sample Size?


    SolutionMinimum Required Sample Size, n= Z/22 p.q B2 = (1.96)2 * (0.53) * (0.47)

    (0.02)2
    = 2393

    Ques 2-

    The Project Manager Assigned to the survey is not sure about the Actual Proportion or about the 2 % Error Limit. The proportion may be anywhere from 40 % to 60 %. Construct a Table for the Minimum Sample Size with half-width ranging from 1 % to 3 % and actual proportion ranging from 40 % to 60 %
    SolutionClick Here for the Solution

    Ques 3Inspect the table produced in Question 2. Comment on the relative sensitivity of the minimum sample size to the actual proportion and to the desired half-width Solution-

    Click Here

    Ques 4At what Value of the Actual Proportion is the Required Sample Size the Maximum? SolutionMaximum Sample Size is when: Proportion, p = 0.5 Bound, B= 0.01

    Therefore, Maximum Sample Size = Z/22 p.q


    B2 =(1.96)2 * (0.5) * (0.5) (0.01)2 =9406

    Ques 5The cost of polling Includes a fixed cost of $425 and a variable cost of $1.20 per person sampled, thus the cost of sampling n voters is $(425 + 1.20n). Tabulate the Cost for range of values as in Question 2. SolutionClick Here

    Ques 6A Competitor of the Company that had announced results to within 3 % with 95 % confidence has started to announce results to within 2 % with 95 % confidence. The project manager wants to go one better by improving the companys estimate to be within 1 % with 95 % Confidence. What would you tell the manager? SolutionCost is Lowest at Error Bound of 3 % Cost Increases Slightly, if we reduce the Error bound to 2 % Significant Increase in Price if the Manager tries to reduce the Bound to 1 % Therefore, the Manager should stick to 2 % with 95 % Confidence interval to match the Competitors EXCEL

    Thank You!

    Shantanu Mittal, 211134 Taranjit Bhasin, 211150 Utsav Sharma, 211153 Varun Arora, 211158 Arjun Kapoor, 211173 Sihagun Gourisaria, 211133

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