The Bureau of Labor Statistics estimates the unemployment rate in the United States monthly by surveying 60,000 individuals.
a. In one month, 3.4% of the 60,000 individuals surveyed are found to be unemployed. Find the margin of error for this estimate. Is the precision (nearest tenth of a percent) reasonable? Explain.
b. Suppose that the number of individuals surveyed were increased by a factor of four (to 240,000). By how much would the margin of error change?
c. Suppose that the number of individuals surveyed were decreased by a factor of one-fourth (to 15,000). By how much would the margin of error change?