## An insurance company estimates 45 percent of its claims have errors. The insurance company wants to estimate with 99 percent confidence the

Question

An insurance company estimates 45 percent of its claims have errors. The insurance company wants to estimate with 99 percent confidence the proportion of claims with errors. What sample size is needed if they wish to be within 5 percent of the actual

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Math
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2021-09-14T00:52:23+00:00
2021-09-14T00:52:23+00:00 1 Answer
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## Answers ( )

Answer:We need a sample size of at least 657.

Step-by-step explanation:In a sample with a number n of people surveyed with a probability of a success of , and a confidence level of , we have the following

confidence interval of proportions.In whichz is the zscore that has a pvalue of .

The margin of error is given by:45 percent of its claims have errors.So

99% confidence levelSo , z is the value of Z that has a pvalue of , so .

What sample size is needed if they wish to be within 5 percent of the actualThis is a sample size of at least n, in which n is found when M = 0.05.

We need a sample size of at least 657.