A marketing firm is asked to estimate the percent of existing customers who would purchase a “digital upgrade” to their basic cable TV servi

Question

A marketing firm is asked to estimate the percent of existing customers who would purchase a “digital upgrade” to their basic cable TV service. The firm wants 99 percent confidence and an error of ± 5 percent. What is the required sample size (to the next higher integer)?A. 664B. 625C. 801D. 957

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Eliza 1 week 2021-10-13T23:46:19+00:00 1 Answer 0

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    2021-10-13T23:47:53+00:00

    Answer: A. 664

    Step-by-step explanation:

    Given : A marketing firm is asked to estimate the percent of existing customers who would purchase a “digital upgrade” to their basic cable TV service.

    But there is no information regarding the population proportion is mentioned.

    Formula to find the samples size , if the prior estimate to the population proportion is unknown :

    n=0.25(\dfrac{z*}{E})^2

    , where E = Margin of error.

    z* = Two -tailed critical z-value

    We know that critical value for 99% confidence interval = z*=2.576  [By z-table]

    Margin of error = 0.05

    Then, the minimum sample size would become :

    n=0.25(\dfrac{2.576}{0.05})^2

    Simplify,

    n=0.25\times2654.3104=663.5776\approx664

    Thus, the required sample size= 664

    Hence, the correct answer is A. 664.

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