Determine the Minimum Sample Size Required for Estimating the Population

question 111

Essay

Determine the minimum sample size required for estimating the population proportion of number of people who drive to work, to within 0.003, with 80% confidence.

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Definitions:

Annuity

A financial instrument that provides a consistent flow of payments to a person, mainly serving as a source of income for people in retirement.

Equal Cash Flow

A scenario in which cash inflows or outflows are the same in each period.

Internal Rate of Return Method

A capital budgeting method that calculates the return on investment by setting the net present value of cash flows equal to zero.

Present Value

Today's worth of a forthcoming sum of money or series of cash payments, considering a designated rate of return.