In a follow-up article on Y2K problems, a reporter wants to conduct a survey of small businesses, in order to estimate the true proportion of small businesses that took some action regarding the Y2K problem-that is, the then-widespread concern that when the date 2000 arrived, it would confuse software that used two-digit dates (such as 99). The reporter wants 95% confidence that her results have a margin of error of 0.03. How many small businesses must be surveyed?
a. Assume the reporter will estimate based on a 1998 Industry Canada study, according to which 66% of small businesses were taking action.
b. Assume, instead, that we do not have prior information on which to estimate the value of .