Acetaminophen and liver damage. It is believed that large doses of acetaminophen (the active ingredient in over the counter pain relievers like Tylenol) may cause damage to the liver. A researcher wants to conduct a study to estimate the proportion of acetaminophen users who have liver damage. For participating in this study, he will pay each subject $20 and provide a free medical consultation if the patient has liver damage.
(a) If he wants to limit the margin of error of his 98% confidence interval to 2%, what is the minimum amount of money he needs to set aside to pay his subjects?
(b) The amount you calculated in part (a) is substantially over his budget so he decides to use fewer subjects. How will this affect the width of his confidence interval?
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