Question

Problem 1. TGI Friday’s is considering introducing a new low-carb Baked Potato to their Atkins-friendly menu, and is going to conduct a survey to assess consumer preferences for such a product. Previous research suggests that 45% of the market likes new low-carb menu options. TGI Friday’s management is willing to accept 1.5% error in this research, and wishes to be 93% confident of its result. How many surveys should be collected?

Show work:

Answer:

Answer 1

Solution :

Given that,

= 0.45

1 - = 1 - 0.45 = 0.55

margin of error = E =1.5 % = 0.015

At 93% confidence level the z is ,

= 1 - 93% = 1 - 0.93 = 0.07

/ 2 = 0.035

Z/2 = Z0.035 = 1.81

Sample size = n = (Z/2 / E)2 * * (1 - )

= (1.81 / 0.015)2 * 0.45 * 0.55

= 3603.71

Sample size =3604