Question

An intern is working for Pacific TV (PTV), a small cable and Internet provider, and has proposed some questions that might be used to assess how much customers are willing to pay for a new PTV service. The intern got a set of 12 with mean of $60.2 and standard deviation of $14.5. How many customers the intern should interview if PTV asks for 80% confidence within 2 units?

Group of answer choices

87

98

345

391

Answer 1

Given that

mean

Margin of error

Standard deviation

Confidence level

we want to estimate the sample size (n)

sample size can be calculated as

Where Zc = Critical value of C = 1.28 ......(By using Z table)

I.e. ..............(Round to the next integer)

Therefore the required number of customers the intern should interview if PTV asks for 80% confidence within 2 units is 87 ..................(Answer)