Question

You are the operations for American Airlines and you are considering a higher fare level for passengers in aisle seats. You want to estimate the percentage of passengers who now prefer aisle seats. How many randomly selected air passengers must you survey? Assume that you want to be 95% confident that the sample percentage is within 2.5 percentage points of the true population percentage. Assume that nothing is known about the percentage of passengers who prefer aisle seats.

Answer 1

Answer: 1537

Explanation:

The formula to calculate the sample size when any prior estimation is not available :-

`n=0.25((z_(\alpha/2))/(E))^2`

Given : Significance level :
`\alpha: 1-0.95=0.05`

Critical value :
`z_(\alpha/2)=1.96`

Margin of error :
`E=0.025`

Then the sample size will be :-

`n=0.25((1.96)/(0.025))^2\\\\\Rightarrow\ n=1536.64\approx1537`