Among 250 employees, of the local office of an international insurance company, 182 are
whites, 51 are blacks and the rest are Orientals. If 5% margin of error is used,
5. How many employees will be chosen for a case study as samples?
6. How many Orientals will be chosen?
7. How many whites will be chosen?
Margin of error = 5%
e= 0.05
Confidence level = 100-5= 95%
Population size, N = 250
Since here we don't know the population proportion so, p= 0.5 is assumed.
Now we find Z at 95% confidence level using the normal distribution table and that is
Z= 1.96 at 95% confidence level
5. The formula for sample size:
"n= \\frac{\\frac{Z^2p(1-p)}{e^2}}{1+\\frac{Z^2p(1-p)}{Ne^2}} \\\\\n\nn= \\frac{\\frac{1.96^2 \\times 0.5(1-0.5)}{0.5^2}}{1+\\frac{1.96^2 \\times 0.5(1-0.5)}{2050 \\times 0.05^2}} \\\\\n\nn=151.44 = 152"
6. In the population , the number of orientals = 250-182-51=17
The proportion of orientals
"p= \\frac{17}{250} = 0.068"
Substituting this value of p in the above formula we get the number of orientals in the sample size of 152.
"n_{Oriental} = \\frac{\\frac{1.96^2 \\times 0.068(1-0.068)}{0.05^2}}{1 + \\frac{1.96^2 \\times 0.068(1-0.068)}{250 \\times 0.05^2}} \\\\\n\n= 70.08 = 71"
7. Number of whites in the population = 182
Proportion of whites
"p= \\frac{182}{250}= 0.728"
On substituting this value of p in the above formula we get the number of whites in the sample.
"n_{Whites} = \\frac{\\frac{1.96^2 \\times 0.728(1-0.728)}{0.05^2}}{1 + \\frac{1.96^2 \\times 0.728(1-0.728)}{250 \\times 0.05^2}} \\\\\n\n= 137.24 = 138"
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