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"; A, "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 98% margin of error to be 0.16 or less?. (Round your answer up to the nearest whole number.)

Explanation / Answer

Here since no preliminary data is given, nothing can be said. Provide some preliminary data, like some pilot sample data ( sample standard deviation ), or a sample proportion parameter p'.

Assuming that the sample s.d. is S, we approximate the population s.d. also as S.

Next, we calculate the sample size n using the formula:

n = (z0.001*S/E)2 , here E = margin of error = 0.16

z0.001 = 2.326

Put the values and solve for n.

Revert back if you have any queries.

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.