One of your employees has suggested that your company develop a new product. You

Question

One of your employees has suggested that your company develop a new product. You decide to take a random sample of your customers and ask whether or not there is interest in the new product. The response is on a 1 to 5 scale with 1 indicating "definitely would not purchase"; 2, "probably would not purchase"; 3, "not sure"; 4, "probably would purchase"; and 5, "definitely would purchase." For an initial analysis, you will record the responses 1, 2, and 3 as "No" and 4 and 5 as "Yes." What sample size would you use if you wanted the 99% margin of error to be 0.05 or less? (Round your answer up to the next whole number.)

Participiants-

Explanation / Answer

Here z value is 2053 and E=0.05

p=1/2=0.5

So we need to find n

Using formula of E=z*srt(p(1-p)/n)

So, n=z^2*0.5*0.5/E^2=665.64=666

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