The article “Consumers Show Increased Liking for Diesel Autos” (USA Today, January 29, 2003) reported that 27% of U.S. consumers would opt for a diesel car if it ran as cleanly and performed as well as a car with a gas engine. Suppose that you suspect that the proportion might be different in your area and that you want to conduct a survey to estimate this proportion for the adult residents of your city. What is the required sample size if you want to estimate this proportion to within .05 with 95% confidence? Compute the required sample size first using .27 as a preliminary estimate of p and then using the conservative value of .5. How do the two sample sizes compare? What sample size would you recommend for this study?
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