Sample Size Calculation
1. **Problem Statement:** We want to find the sample size $n$ needed to estimate the percentage of adults gambling online with a 95% confidence level and a margin of error of 4 percentage points (0.04).
2. **Given Data:**
Confidence level = 95% \( \Rightarrow z_{\alpha/2} = 1.96 \)
Margin of error \(E = 0.04\)
3. **Formula for sample size when estimating a proportion:**
\[
n = \left(\frac{z_{\alpha/2}}{E}\right)^2 p (1-p) \]
where $p$ is the estimated proportion of adults gambling online.
### Part (a)
4. **Assuming nothing is known about $p$:**
We use $p = 0.5$ to maximize the product $p(1-p)$, giving the largest sample size.
5. Calculate
$$
n = \left(\frac{1.96}{0.04}\right)^2 \times 0.5 \times (1-0.5) = (49)^2 \times 0.25 = 2401 \times 0.25 = 600.25
$$
6. Round up:
\[
n = 601\]
### Part (b)
7. **Assuming $p=0.19$ (19% gamble online):**
Calculate
$$
n = \left(\frac{1.96}{0.04}\right)^2 \times 0.19 \times (1-0.19) = 2401 \times 0.19 \times 0.81 = 2401 \times 0.1539 = 369.63
$$
8. Round up:
\[
n = 370\]
**Final answers:**
- (a) $n = 601$
- (b) $n = 370$