In preparing a report on the economy, we need to estimate the percentage of businesses that plan to hire addi- tional employees in the next 60 days.
a) How many randomly selected employers must we contact in order to create an estimate in which we are 98% confident with a margin of error of 5%?
b) Suppose we want to reduce the margin of error to 3%. What sample size will suffice?
c) Why might it not be worth the effort to try to get an interval with a margin of error of 1%?