Question

A new streaming service sent out a survey to 350 households to see who would be interested in its service. The company found that it could charge $55 per month, with a margin of error of ±1.3. If 1,000 people signed up for the service, what is the least amount of monthly revenue the company should expect?

$52,815
$53,700
$54,915
$56,300

Answer 1

• B) $53700

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The charge of $55 with error margin of ± 1.3 results in the least value of $(55 - 1.3) = $53.7 and greatest value of $(55 + 1.3) = $56.3.

If 1000 people signed up for the service, then the least total amount is:

• $53.7*1000 = $53700

Correct choice is B.