108k views
2 votes
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 90% margin of error to be 0.05 or less? (Round your answer up to the nearest whole number.) participants

User Caesium
by
7.8k points

1 Answer

2 votes

Answer:

269

Explanation:

The margin of Error is E = 0.05

The level of significance is, α = 1 - confidence level = 1 - 0.9 = 0.1

Assume that the proportion is, p =0.5

From the standard normal table, observe that the critical value of Z for two tail test and 10% level of significance is 1.64

The calculation of sample size is as follows: n = (Z/E)²p(1-p)

n = (1.64/0.05)²0.5 (1 - 0.5)

n = (1.64/0.05)² 0.25

n = 1075.84 × 0.25

n = 268.96 ≈ 269

The required sample size with the given margin of error approximately is 269. This value indicates the size of the customers who are using this company’s products.

User Jenay
by
7.0k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.